Brazil Pres. Bolsonaro says he is concerned that a proposed sale of 80% of Embraer’s (ERJ +0.2%) commercial aviation business to Boeing (BA +4.6%) could lead to the U.S. company taking over the entire division.
Bolsonaro’s statement is the strongest indication yet of concerns by the Brazilian government, which has to approve the deal, over the proposed tie-up.
"The merger would be good," Bolsonaro says, but it could result in the Brazilian planemaker "passing to the other side... That’s our concern. [Embraer] is our patrimony."
Under deal terms presented last month, ERJ would keep 20% of its commercial division while being allowed to sell that stake to Boeing within the next 10 years for ~$1B.
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