Brazilian government clears Embraer-Boeing deal

President Jair Bolsonaro decided not to use his veto power. The joint venture controlled by the American company will take over the commercial area of the Brazilian company.

From the Newsroom

São Paulo – The Brazilian government decided this Thursday (10) not to use his veto power against the Embraer-Boeing deal. Although the Brazilian aircraft manufacturer was privatized in 1994, the government still retained the so-called golden share, which meant it was entitled to vetoing the transfer of majority stakeholdership.

The Brazilian Presidency’s Special Secretariat for Social Communication said president Jair Bolsonaro met with Defense minister Fernando Azevedo e Silva, Institutional Security Cabinet minister Augusto Heleno, foreign minister Ernesto Araújo, Science, Technology, Innovations and Communications minister Marcos Pontes and Navy, Army and Air Force officials.

The Secretariat said Bolsonaro was told that the terms of the deal have been looked into, and that the contents “observe national sovereignty and interests.”

The deal was made public in July of last year and confirmed in December. It will see the companies enter into a joint venture, with Boeing retaining 80% and Embraer, 20%. The newly-created company will take over Embraer’s commercial aviation business. Boeing will pay USD 4.2 billion. The amount is 10% higher than originally announced.

Another joint venture will be formed for sales of military cargo aircraft KC-390, created by Embraer, with the latter holding 51% and Boeing retaining 49%.

 Translated by Gabriel Pomerancblum

Zheng Shuai/Imaginechina/AFP

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