U.S. aviation giant Boeing has “understood” the Brazilian government’s position against a buy-out of domestic aircraft manufacturer Embraer, with talks now focused on creating a jointly owned third company, according to Brazilian Defense Minister Raul Jungmann on Thursday. Jungmann told reporters talks between the two companies were “going well.” Talk of a possible Boeing buy-out of Embraer surfaced earlier this year. Both companies subsequently confirmed the existence of negotiations but without spelling out their objectives. Embraer was founded as a government-owned company in 1969. It was partially privatized in the 1990s, but with the government holding a so-called golden share, allowing it to veto key decisions. Embraer is considered a vital Brazilian defense industry as well as a national champion in the field of aviation. In comments Wednesday at an investment conference in Miami, Boeing CEO Dennis Muilenburg said his company and Embraer would be “a good fit.” However, he added that an eventual buy-out or merger was not “essential” to his company’s global strategy.
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