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US airframer Boeing has reportedly said it is not seeking a change of control at Embraer as it seeks to take over the Brazilian company.
Boeing has moved quickly to create a tie-up with Embraer in what is seen as a retaliatory move to counter the Airbus/Bombardier deal which saw the European planemaker take a 50.1% stake in the Canadian company for no financial cost.
Sources close to the talks say the deal is aimed at creating joint-venture operations and Boeing has no vision for a change in control at Embraer.
That idea is likely to please Brazilian regulators who had voiced concerns about a take-over, largely due to Boeing’s role in the Brazilian defence sector.
The deal will likely see Boeing complementing its aircraft sales portfolio with Embraer’s successful regional jet range to offer better packages to airlines, in particular, those using Boeings start-up program.
Shares in the Brazilian company have shot up by 40% as a result of the talks between the two companies.