Bolsonaro Greenlights Boeing-Embraer Merger

The two companies are expected to consolidate their operations by the end of 2019

Brasília

President Jair Bolsonaro cleared the merger between Brazilian aircraft maker Embraer with the US company Boeing. After a meeting with senior cabinet officers and Air Force high-ranking officials, Bolsonaro announced he wouldn't veto the deal, according to a statement released by Palácio do Planalto on Thursday (10th) evening.

Bolsonaro met with officers from the ministries of Defense, Science and Technology, Foreign Affairs and Economy.

President Jair Bolsonaro during a meeting about the Embraer Boeing merger - Isac Nóbrega/PR

A little before finishing the meeting, the president used social media to declare that his administration wouldn't oppose the ongoing deal between the two companies.

"It became clear that Brazil's sovereignty and interests are preserved. The Union won't oppose the deal to move forward," tweeted the president, a little before his press office confirmed the green light.

According to the press statement, "the president was informed that all scenarios were carefully considered, and thus, he won't exercise his right to veto (golden share) the merger."

The government could use its golden share to reject the merger since Embraer was formerly a state company and privatized in 1994.

The Brazilian aircraft maker and Boeing issued a joint press statement informing that, now that they have the presidential greenlight, the next step will be a meeting of Embraer's board.

Translated by NATASHA MADOV

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