Embraer-Boeing Merger To Go Forward Despite Bolsonaro's Remarks

Minister Augusto Heleno said that deal between the two companies is under review

Brasília and São Paulo

After president Bolsonaro raised doubts about the merger between Embraer and Boeing, senior cabinet officer General Augusto Heleno said on Monday (7th) that the government will not interfere in the deal. 

On Friday (4th), Bolsonaro said he was concerned that the joint-venture between the two companies could become 100% American in the future.

The government needs to approve the merger for it to be finalized.
The agreement says that Embraer can dispose of its 20% ownership in the joint venture, to be called NewCo. The new company will make Embraer's line of jets for regional flights and will develop new products.

"We discussed today that we need to review if this is ideal, or if we can negotiate another solution," commented Heleno about the 20% clause.
He said he is also concerned about Brazil will losing ground in airspace technology.

"The deal involves not only physical assets but hard-earned technology know-how, that we wouldn't like to lose," he said.
When asked if this concern could jeopardize the merger, he said: "There is no plan to interrupt the ongoing review process at this point."

Translated by NATASHA MADOV

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Bernardo Caram , Mariana Carneiro , Talita Fernandes , Gustavo Uribe and Julio Wiziack