Planalto notes on the agreement between Boeing and Embraer – Airpower

The agreement provides for the creation of a new commercial aviation company. The government has a golden action and could veto it. "The final proposal preserves sovereignty and national interests", says

Plbadto Palace said in a note on Thursday (10) that the government will not exercise the right of veto over the agreement creation between Boeing and Embraer

According to the note issued by the presidential communications office, President Jair Bolsonaro was informed at a meeting held Thursday at Plbadto Palace that the final proposal of the "Agreement preserves national sovereignty and interests."

In December, the two companies announced that they had approved the terms of the agreement announced last July. The US company Boeing will own 80% of the new business and the Brazilian company Embraer will hold the remaining 20%. As parent company, Boeing will make a payment of $ 4.2 billion ($ 16.4 billion), about 10% more than originally planned.

The agreement between the US company and Brazil was to be approved by the Brazilian government, which holds a "specific action", which confers a veto on strategic decisions regarding Embraer, such as the transfer of control of shares of the company.

Bolsonaro met ministers on Thursday to discuss the issue. "We can not, as in the last proposal, in five years, everything will happen in the future," he said.

According to a document prepared by Aeronautics and communicated by Plbadto advisers, the agreement between Boeing and Embraer will include the following "general considerations":

• The control of the database will not be modified.
• The strategic interests and the unconditional respect of the golden share will be respected
• All current projects in the field of defense will be maintained
• The production in Brazil of aircraft already developed will be maintained
• A dividend corresponding to 20% of Embraer's stake in NewCo will be paid
• Current jobs in Brazil will be maintained
• The capacity of the motor body will be maintained
• There will be a first Embraer box of 39 approximately $ 1 billion
• The secret will remain secret and the priority of the government will be given in the definitions of defense projects.
• The aircraft fees will be retained. Embraer KC-390

  Embraer KC-390

  Defense Agreement

  In addition to the partnership in commercial aviation, Boeing and Embraer have agreed conditions for the creation of a second company , to promote and develop new defense markets, involving the KC-390 multi-mission aircraft.

  According to the partnership, Embraer will be the parent company of this company, with a 51% stake, and

  At a meeting held today, the President of the Republic of Brazil, the President of the Republic of Brazil, with the exmo. Mr. Jair Bolsonaro, with the Ministers of Defense, GSI, Foreign Affairs, Science and Technology, Innovations and Communications; and representatives of the Ministry of Economy and Command of the Navy, Army and Air Force, the terms of negotiations between EMBRAER (privatized since 1994) and BOEING were presented.

  The President was informed of their badessment.

  Given this, the Golden Share will not be exercised in the company

  ] ] SOURCE : G1