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(Credit: Antonio Cruz / Agência Brasil)
The President of the Republic, Jair Bolsonaro, said on Monday 27 that the government can negotiate the sale of Embraer (EMBR3) to another company, after the American Boeing gave up the purchase. Bolsonaro noted that the decision is up to him, since the federal government has the call golden part, which gives the government veto power in the strategic decisions of the company.
“We are evaluating, I have the golden part, it is mine, I subscribe, okay? If the agreement is really broken, a new negotiation can begin with another company, “Bolsonaro said, leaving the Alvorada Palace next to the Minister of Economy, Paulo Guedes.
Last Saturday, Boeing announced that it has ended negotiations to buy Embraer’s commercial aviation division. The companies announced the $ 4.2 billion deal in July 2018, and the end of the talks leaves the Brazilian company in a delicate position.
The withdrawal comes amid paralysis in the airline sector due to the covid-19 pandemic
In response, the Brazilian aircraft maker called investors for a conference call on Monday.
If they decide to prosecute the contract with Boeing, the dispute between the companies will take place in the United States Justice, in the southern district of New York, as the parties defined in the memorandum of understanding.
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