By Russ
Niles | December 23, 2017
The president of Brazil says his government will exercise
its veto power to block the transfer of control of Embraer to Boeing. Michel
Temer said Friday the company is not for sale but he would welcome investment
from Boeing. "All partnerships are welcome. What is not an option is the
transference of control," said Temer. The Brazilian government has special
shareholder status in the company and can veto any decision by the company
management and directors. Defense Minister Raul Jungmann said Embraer is a key
technology developer in Brazil and handing over control to a foreign company is
out of the question. "This is about national sovereignty and national
interests, and we cannot negotiate that. The Temer administration understands
that sovereignty is non-negotiable," said Jungmann.
Boeing confirmed on Thursday that it was in talks with
Embraer about a “combination” of the two companies but did not elaborate. The
announcement came after The Wall Street Journal published a story on Thursday
about the meetings. Subsequent reports in various publications used words like
“takeover” and “merger” to describe the discussions. The meetings were held as
the U.S. Commerce Department confirmed almost 300 percent import duties on
Bombardier’s C Series airliners, ruling they were unfairly subsidized by the
Canadian government. Boeing and Embraer had both filed protests about the sale
of 75 C Series to Delta Air Lines and what they claimed were below-market
prices.
Original post: avweb.com
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