Temer says he would study any decision the companies take on an alliance but emphasizes that Brazil's government could use its "golden share" veto power in ERJ to block foreign control.
ERJ has much to gain from a closer partnership with BA, especially in the segment of regional craft, says an analyst at São Paulo brokerage Magliano Corretora: “Neither the government nor the military will let Embraer go... but Embraer would benefit because Boeing has huge marketing power.”
For Boeing, a combination would fortify the company in the market segment for smaller, regional jets, where it currently has little presence.
The companies said yesterday that they are discussing a “potential combination,” provided Brazil’s government gives its blessing.
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