Brazilian President Michel Temer and Defense Minister Raul Jungmann shot down Boeing’s apparent attempt to take over jet maker Embraer during a breakfast with journalists Friday.
“Every partnership is welcome,” said Temer. “What’s not under consideration is the transfer of ownership.” Jungmann said a sale is out of the question, as Embraer is considered key to Brazil’s national sovereignty.
Embraer and Boeing disclosed Thursday in a joint filing with the U.S. Securities and Exchange Commission that they are negotiating “a potential combination.” Terms of the deal are under discussion. Boeing is eyeing Embraer in a bid to keep up with Airbus and Bombardier, which announced in October a partnership for the production of commercial jets.
The filing said the proposed deal would be submitted to the approval of the Brazilian government and regulatory bodies, as well as the directors and shareholders of both companies. News of the development sent Embraer’s shares on B3, Brazil’s stock exchange, up 22.5%.