Government of Brazil approves Boeing-Embraer company

The Brazilian government said on Thursday it would allow a proposed partnership between aircraft manufacturers Embraer SA and Boeing Co to advance, ending weeks of uncertainty in which President Jair Bolsonaro expressed hesitation.

The approval maintains the terms of the agreement as previously proposed, with Embraer selling 80 percent of its commercial aircraft division, the most profitable, for $ 4.2 billion to Boeing, which will have full control of the new venture.

But one thing is new: the government said in a press release that both companies would “keep current jobs in Brazil,” a move that could appease unions and politicians who had raised fears that, if the deal were made, Boeing would then cut jobs.

Both firms had not previously committed themselves to this issue.

The agreement has yet to be voted on by Embraer’s private shareholders within the next 30 days but obtaining the support of the Brazilian government was its biggest barrier. If approved, signatures should seek regulatory approvals.

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