The Wall Street Journal today reports that the Boeing Company has been discussing with Brazilian aeroplane manufacturer Embraer (Empresa Brasileira de Aeronáutica) about a takeover that would value the latter at 3.7 billion USD, way above its market value.
The talks are currently on hold, as the parties await an authorisation to pursue the discussions from the Brazilian government, which has a so-called golden share in Embraer that gives it the powers to veto such a transaction.
In order to help convince the government, Boeing is willing to protect Embraer’s brand, management and jobs, but many people think this might be insufficient as Embraer is considered as a crown jewel of Brazilian industry.
The company, the third largest commercial jet aircraft manufacturer in the world, is best known for making regional jets in the 70- to 100-seat range, which are heavily used on routes where demand doesn’t justify operating larger Boeing or Airbus planes. It also offers a range of military transport aircraft.
The Boeing move is seen as a reaction to the recent decision of Airbus to take a majority share in the CSeries programme of Canadian plane manufacturer Bombardier.
After the above lines were written, Boeing and Embraer confirmed the talks in the following statement:
This post was published on 21 December 2017 19:14
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