Bolsonaro OK with Embraer-Boeing deal: defense minister pick

Industry:    2018-10-30

Brazilian President-elect Jair Bolsonaro has a positive view of a proposed commercial aviation partnership between Boeing Co (BA.N) and local aircraft maker Embraer SA (EMBR3.SA), Bolsonaro’s choice for defense minister told Reuters on Monday.

Former General Augusto Heleno said the deal could be cleared by the current administration of President Michel Temer, although Bolsonaro’s team would like to see details of the proposed joint venture.

“It’s not that the government is leaving and so it cannot take any action,” Heleno said, referring to the outgoing Temer administration. “If we had a conversation and we reached a conclusion, ‘Look, everything’s good, this is worth it,’ we don’t have to keep waiting,” Heleno said.

Embraer reached a preliminary agreement in July to sell 80 percent of its commercial jet division to Boeing in a venture valued at $4.75 billion. The deal has not closed yet, in part because Brazil’s government holds a “golden share” that grants it veto power over strategic business decisions at Embraer.

Last week, the current defense minister, Joaquim Silva e Luna, told Reuters that Brazil’s next president would be presented with the details of the deal.

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