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Brazil government approves Boeing-Embraer tie-up

Reuters  |  SAO PAULO 

(Reuters) - The on Thursday said it would allow a proposed tie-up between planemakers SA and to go forward, capping weeks of uncertainty in which expressed his hesitation.

The deal still must be approved by shareholders and regulators, but winning the backing of was its biggest hurdle.

Under the proposed deal, 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 which bought Bombardier Inc's commercial plane division that competed with

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."

(Reporting by Marcelo Rochabrun; Editing by and Lisa Shumaker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 03:23 IST