Brazilian President not opposed to Boeing and Embraer talks, but would veto loss of control

    Brazil‘s President Michel Temer reportedly informed representatives from the Ministry of Defence and Brazilian Air Force he is not opposed to negotiations between Embraer and Boeing about a potential stake sale, but would not accept control of Embraer being taken by the US manufacturer due to the company’s strategic and economic importance to Brazil (Folha/TV Globo, 21-Dec-2017). Embraer has been publicly listed since 2006, although the Brazilian Government holds a golden share, allowing it to block major share ownership changes and strategic moves. The Ministry of Defence is also reportedly opposed to any loss of control in Embraer, due to the extensive defence contracts it holds, including the KC-390 transporter and military/communications satellites.