Boeing and Embraer in tie-up talks to focus on joint ventures


Talks between Boeing and Brazil's Embraer are reportedly centered around joint ventures and not a complete takeover.

Boeing is interested in forming joint ventures to boost its aircraft portfolio, expand sales platforms and develop new products, Brazilian paper Valor Economico reported. A full takeover of Embraer was unlikely as the Brazilian government and regulators, the two companies' boards and Embraer's shareholders needed to approve it and Brasilia didn't want to cede complete control of important defense products. The report said current talks include both defense and commercial segments.Last month, Brazilian President Michel Temer said that he is against Boeing taking over control of Embraer after the two companies announced that they are engaged in buyout talks. Temer said he would be receptive to a deal that infuses foreign capital into one of Brazil's top industrial giants. Boeing's talks with Embraer come after Airbus announced in October that it would buy a majority stake in Bombardier's struggling C Series narrow body jet.