The Brazilian government today approved the creation of a joint venture that would give Boeing control over Embraer’s commercial airplane operation.
That approval is crucial to the $4.2 billion deal, because the government holds a “golden share” in Embraer that could have been used to veto the arrangement. Some observers wondered whether the country’s newly inaugurated president, Jair Bolsonaro, would give the OK.
Today the government said that the agreement “preserves sovereignty and national interests,” and that the “golden share would not be exercised.”
The arrangement calls for Boeing to acquire an 80 percent ownership stake in a joint venture that would take in Embraer’s commercial aircraft and services operations.