Boeing may establish a Joint Venture with Embraer instead of acquisition


Sao Paulo - After being rejected by the Brazilian Government to transform Embraer into a subsidiary of Boeing, the US giant presented a second proposal that seems to have pleased both the Brazilian manufacturer and politicians in Brazil.

Brazilian government's objection to the acquisition of Embraer by Boeing due to the willingness not to hand over the control of Embraer's Defense & Security division to the US, made the American manufacturer come up with a new proposal.

In CBN Radio's Day-to-Day Economy program, journalist Miriam Leitão said that Boeing's new proposal is to create a third company involving the Embraer divisions that are of interest to Americans, except Defense & Security department of the Brazilian Aerospace Company.

According to the journalist, the new company may involve control of Embraer's commercial and executive aviation divisions. Miriam also added that Boeing plans to count on Brazilian manufacturer teams to develop a new aircraft, possibly the NMA (New Mid-market Airplane) project, unofficially dubbed the 797 by media.

The first proposal offered by Boeing to acquire the control of Embraer would require negotiation with Brazilian government for its golden share in the company that gives the holder to reject any agreement reached by both parties.

Negotiations for the creation of a partnership between Boeing and Embraer were mainly motivated after Airbus took over the rights of the C Series program of Canadian manufacturer Bombardier, the main competitor of the Embraer's regional jets.