NEW YORK – Boeing and Brazilian aircraft manufacturer Embraer confirmed on Thursday that they are in talks possibly leading to a merger, but they also said that an agreement may not be achievable.
The announcement was made in a press release by Boeing and in a statement by Embraer to the US Securities and Exchange Commission after which The Wall Street Journal reported on the matter.
The joint communique establishes that the talks are being steered toward combining the two businesses that they are still under way and there are no “guarantees” that they will result in agreement.
The text, datelined Chicago and Sao Paulo, reads that neither of the two firms intends to make any additional comments about the talks.
Any business deal will be subject to the approval of the Brazilian government and the regulatory bodies, as well as the administrative boards of the two companies and the stockholders of the Brazilian firm.
According to the WSJ, the negotiations are looking into the possibility that Boeing might buy Embraer, a move that would strengthen its presence in Latin America.
The daily reported that the talks are currently suspended while the parties await a response from the Brazilian government about a possible merger.
According to this version, Brasilia has veto power over such a move, but the WSJ said that there is little chance that an agreement will be reached on that score.
Boeing shares were down 0.88 percent on the New York Stock Exchange on Thursday, while Embraer’s ADRs moved 21.8 percent higher.