Embraer, Boeing close to reaching agreement on business combination - reports (translated)
20 APR 2018
Embraer [NYSE:ERJ] and Boeing [NYSE:BA] are close to announcing a business combination agreement, Brazilian newspapers O Globo and O Estado de Sao Paulo reported citing unnamed sources for the information.
Both items said that the agreement will include the creation of a new company that will have Embraer’s commercial aircraft producing unit, which focuses on aircrafts with up to 150 seats. The US-based company will have an 80% stake in this new company, while Embraer the remaining 20%, the Portuguese-language articles noted.
O Estado de Sao Paulo said that the deal will not be announced next week because the Brazilian defense minister Joaquim Silva will be out of the country, the item added.
A third newspaper, Folha de Sao Paulo, said that the parties still are discussing the composition of the board of directors of the new company to be created. The deal will be announced once that issue is resolved, the article said citing unnamed sources.
O Estado de Sao Paulo added that the Brazilian government wants at least one seat on the board of the new company to be occupied by a Brazilian resident, and Boeing has rejected the idea.
Link to original source (O Globo)
Link to original source (O Estado de Sao Paulo)
Link to original source (Folha de Sao Paulo)
Link to original source (O Estado de Sao Paulo)
Link to original source (Folha de Sao Paulo)