Friday, December 22, 2017

Business: Boeing Takes on "Brazilian Accent"?

Boeing and Brazilian aircraft maker Embraer are discussing a takeover deal that would give the U.S. company a presence in the regional-jet market, helping it counter a recent partnership agreement between Airbus and Canada’s Bombardier. 

If the Boeing-Embraer deal goes through, it would be the latest in a string of aerospace transactions with the potential to reshape the global landscape of the plane-making industry. 

Following our report on the talks, the companies said they were “engaged in discussions regarding a potential combination, the basis of which remains under discussion.” We report the deal could involve a relatively large premium for the Brazilian company, which had a market value of about $3.7 billion before soaring on the news. The parties are awaiting word from the Brazilian government—which has a so-called golden share in Embraer that gives it veto power over such a transaction—on whether it would sign off on the combination.

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