Boeing Co (NYSE:BA) could be only weeks away from inking a milestone deal with Brazilian aircraft maker Embraer.
That’s according to Bloomberg, which has the exclusive details on the long-running deal:
Brazilian President Michel Temer has endorsed the partnership in principle, said a person familiar with the discussions, a crucial step since the Brazilian government has veto power over any Embraer tie-up. The talks will potentially conclude within weeks, said a second person, who asked not be named because the discussions are private.
Boeing and Embraer are getting closer to a pact that would forge the second global alliance between major airplane manufacturers.
The deal has been in the works for several months now, with the Brazilian government initially rebuffing Boeing’s advances. Since then, the talks have evolved from an outright acquisition to a commercial joint venture. Reportedly, the new pact would include Boeing using its marketing, manufacturing, and engineering skills to sell Embraer’s passenger planes. Meanwhile, Embraer’s defense unit would remain a separate company.
Boeing Co shares were unchanged in premarket trading Wednesday. Year-to-date, Boeing Company (The) (BA - Get Rating) has gained 26.92%, versus a 4.94% rise in the benchmark S&P 500 index during the same period.