The Brazilian government on Thursday said it would allow a proposed tie-up between planemakers Embraer SA
The deal still must be approved by shareholders and regulators, but winning the backing of Brazil`s government was its biggest hurdle.
Under the proposed deal, Embraer will sell 80 percent of its commercial plane division, its most profitable, for $4.2 billion. The deal is seen as part of a reshaping of the global aviation market for mid-sized planes. It follows a similar deal by Boeing`s rival Airbus
Embraer`s private shareholders now must vote to approve or reject the deal within 30 days.
Shortly after assuming the presidency on Jan. 1, Bolsonaro, a former army captain, had expressed concern that Boeing might end up owning all of Embraer if the deal was approved under the terms proposed.
But on Thursday, a statement from his office said his government had analyzed the proposal and found that it "preserves (Brazil`s) sovereignty and the national interests."
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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