Boeing is discussing a “potential combination” with Brazil’s Embraer the companies said. A blockbuster deal that would expand the U.S. aerospace giant’s lineup of commercial and military aircraft.
The talks have centered on a takeover, with Boeing offering Embraer a substantial premium over its $3.7 billion market value, the Wall Street Journal said Thursday. Any tie-up would need to be approved by the Brazilian government, the companies said in a statement.
Embraer’s shares soared around 30 per cent in Sao Paulo on the joint statement released in Brazil, which did not give details of how a potential tie-up would be structured. Boeing shares were down 0.7 per cent.
The news, first reported in the Wall Street Journal, comes just two months after Boeing rival Airbus SE agreed to buy a majority stake in Bombardier Inc’s CSeries jetliner program, a direct rival of Embraer’s biggest E-Jets.