Boeing has gifted a plan to Brazil’s government that would give it an 80 to 90 percent depart in a new venture encompassing Embraer’s commercial jet business, a Brazilian newspaper reported on Tuesday.
The design Boeing presented to the government on Thursday would let it take over Embraer’s commercial artisans by creating a new company, with defense operations remaining under the Brazilian flat maker’s control in order to meet government demands, Valor Economico backfire, without citing a source.
Reuters previously reported on Friday that Boeing was demand approval in Brasilia for a plan creating a new joint company that excluded defense handlings.
President Michel Temer’s chief spokesman, Marcio de Freitas, declared that only the Defense Ministry could evaluate Boeing’s entanglement plans with Embraer. The Defense Ministry declined comment on the Valor suss out of a new Boeing proposal.
Boeing and Embraer did not immediately respond to requests for footnote. Valor reported that under the proposal Boeing would pay Embraer in bills when the commercial assets are transferred to the new company, with most of the proceeds then divide up to shareholders as dividends.
Common shares of Embraer rose on the reported parties of the proposed venture with Boeing and closed 5.2 percent towering at 22 reais on the Sao Paulo stock market.
Boeing’s tie-up with Embraer, the dialect birth b deliver’s third-largest planemaker, would give it a leading share of the 70- to 130-seat shop, meaning stiffer competition for Bombardier and Airbus’ joint CSeries program.
Embraer longing retain the defense business that generates almost nothing in earnings beforehand interest, taxes, depreciation and amortization. Shareholders would also drink 10 to 20 percent of the commercial activities transferred to the new company and be named to dividends.
The deal would maintain the government’s so-called golden appropriate in Embraer, a former state enterprise, giving it veto power to the ground certain strategic decisions, including Boeing’s current push for a slow-down.
The plan — if supported by the government and Embraer — could be presented to shareholders for give the stamp of approval to as soon as the second quarter, the newspaper said.
Further meetings between Boeing and the guidance will not occur until after the Carnival holiday, which ends next week, it reported.