The American mega-plane maker Boeing have confirmed today they are in talks to take over Embraer, the Brazilian aircraft manufacturer. The deal puts a value of $3.7 billion on Embraer and sent the Brazilian companies share price rocketing on Thursday, although industry commentators are urging on the side of caution at the announcement, for it would undoubtedly cause hundreds, if not thousands of job losses at Embraer - news its work forced certainly didn't want to hear just days before Christmas.
The Boeing Company and Embraer today confirmed the two companies are engaged in discussions regarding a potential combination, the basis of which remains under discussion.
There is no guarantee a transaction will result from these discussions. Boeing and Embraer do not intend to make any additional comments regarding these discussions.
Any transaction would be subject to the approval of the Brazilian government and regulators, the two companies’ boards and Embraer’s shareholders.
The rushed announcement came from Boeing and comes a month or so after Airbus and Bombardier announced a tie-up that would see the Canadain manufacturers US-bound CSeries aircraft made in Airbus' American plant.
The CSeries and Embraer's commercial aircraft are in the same class and are head to head competitors and some see Boeing's takeover of Embraer as another aggressive step in their campaign to put Bombardier out of business.
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