Brazil’s government welcomes talks between U.S. aviation giant Boeing and Brazilian aircraft manufacturer Embraer as long as they are aimed only at development of productive partnerships, Brazilian President Michel Temer said Friday at a news conference. He said Brazil’s government would block any move by the U.S. company to buy a controlling stake in Embraer. Temer said continued Brazilian control of Embraer was “a matter of national sovereignty.” Boeing and Embraer on Thursday released a joint statement saying they were in talks aimed at a “potential combination.” The statement offered few details. The statement followed an article by the Wall Street Journal saying Boeing was interested in buying a stake in Embraer. The Brazilian company was founded as a wholly owned state enterprise in 1969. Much of Embraer’s early production was sold to the Brazilian Air Force. In 1994, the government privatized Embraer but retained a so-called “Golden Share” giving the government an effective veto over major corporate decisions.
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