Boeing and Embraer in tie-up talks to focus on joint ventures
Sao Paulo — Tie-up talks between Boeing and Embraer do not contemplate a change of control at the Brazilian aircraft maker and are focused on joint ventures and joint business agreements, a Brazilian newspaper reported on Tuesday. Citing sources familiar with the talks, Valor Econômico said the companies were looking at forming joint business agreements in which they divide costs and income in certain areas, or joint ventures, in which both companies enter independently into a partnership. Among the areas Boeing was looking to focus on, the paper said, was complementing its aircraft portfolio, expanding sales platforms, and developing new products. Such an arrangement would likely ease regulatory pressure surrounding the deal, as Brazil’s government has repeatedly said it is opposed to Boeing gaining control over Embraer due to the plane maker’s key role in Brazil’s defence sector. However, it may point to limits to the ambitions of a potential tie-up. Neither Boeing nor Embraer imm...
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