New York - The world's largest aircraft manufacturer Boeing talks to Brazilian manufacturer Embraer for a potential takeover.

The information was confirmed by both companies today, on Thursday, December 21. The deal would push Boeing into the smaller jet market as Airbus did with Bombardier and its new CSeries.

According to Wall Street Journal, Boeing is prepared to pay a decent amount of money compared to the stock exchange value of Embraer.

As of today, the market value of Embraer is about $ 3.7 billion. The price of US-traded Brazilian companies jumped 26 percent, WSJ reported. By contrast, Boeing's shares lost some of their value.

The participants are waiting for a statement from the Brazilian government, whether it approves the deal, as it was called by the companies. The government has a so-called golden share of Embraer and could prevent the merger thanks to a special voting right.

Embraer builds civil and military aircraft and is considered one of the crown jewels of the Brazilian economy. According to the "WSJ", Boeing would be prepared to maintain the Embraer brand and the management and secure the jobs in the group. Also, the interests of the government in the military aviation sector would be protected in the deal.

If materialized, this deal would be the Boeing's biggest acquisition since the takeover of US aircraft manufacturer McDonnell Douglas 20 years ago. With this takeover, Boeing wants to strengthen its position against the archrival Airbus.

The European manufacturer had secured in October, the majority stake of the medium-range CSeries program of Canadian manufacturer Bombardier.