Boeing Is in Talks for Combination With Regional-Jet Maker Embraer
- A deal would be subject to approval by Brazilian government
- Discussions follow Airbus-Bombardier pact on C Series program
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Boeing Co. is mulling a “potential combination” with Brazil’s Embraer SA, the companies said, in a blockbuster deal that would expand the U.S. aerospace giant’s reach into the highly competitive market for smaller jets.
The options under discussion include a joint venture that would enable the companies to share supplier savings and cross-sell their largely complementary lineup of commercial jets, said a person familiar with the matter, who asked not to be identified because the talks are private. Such a partnership would stop short of a full takeover, which would risk becoming a lightning rod for Brazilian politicians. Embraer had a market value of $3.7 billion before the shares surged Thursday on news of the talks.