Embraer shares take off after Bolsonaro approves Boeing merger
The share price in Brazilian airplane manufacturer Embraer soared Friday as markets reacted favourably to the country's President Jair Bolsonaro approving a merger with US giant Boeing.
The share price jumped 7.43% on the Sao Paulo stock exchange, despite Ibovespa falling 0.28%.
It came a day after Bolsonaro announced he would not be using his veto powers to block the merger between two of the world's three biggest aviation companies.
Embraer's shares had taken a nose dive last week after Bolsonaro had expressed concerns over the deal.
But now the $5.2 billion deal, which will see Boeing take control of Embraer's commercial airplane manufacturing business - 80%of its operation - will go ahead.
Embraer will only retain control of its military division. On Thursday, Bolsonaro had said he was satisfied that 'the final proposal preserves (Brazil's) sovereignty and national interests.'
Embraer was founded as a state group in 1969 before being privatized in 1994, although the Brazilian government retained a 'golden share' giving it the right to veto strategic decisions for the company.
More from Defence Notes
-
![What the future holds for Ukraine and NATO under a Trump administration]()
What the future holds for Ukraine and NATO under a Trump administration
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
-
![RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific]()
RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
-
![Australia outlines longer punch and brings local industry onboard]()
Australia outlines longer punch and brings local industry onboard
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
-
![UK boosts defence budget by 5.3%, but is this enough?]()
UK boosts defence budget by 5.3%, but is this enough?
The UK budget announced in Parliament on 30 October is the first by a Labour government in 14 years. While it sees a boost in defence spending, this comes in the face of fiscal challenges and the effects of inflation.
-
![UK makes big moves to fix “broken” defence procurement system ahead of major review]()
UK makes big moves to fix “broken” defence procurement system ahead of major review
The changes are intended to meet greater need and deliver more value for money.
