Embraer Stock Climbs On Discussions With Boeing For Potential Combination

(RTTNews) - Shares of Embraer (ERJ) surged around 22 percent on Thursday after it was announced that the Brazilian Jet maker Embraer (ERJ) is in discussions with aerospace giant Boeing Co. (BA) regarding a potential combination, the basis of which remains under discussion.

In a joint statement, the companies stated that there is no guarantee a transaction will result from these discussions. Boeing and Embraer said they do not intend to make any additional comments regarding these discussions.

Any transaction would be subject to the approval of the Brazilian government and regulators, the two companies' boards and Embraer's shareholders, the companies noted.

On the NYSE, Embraer shares gained 22.1 percent in the regular trading ans settled at $24.42. In the after hours trading, shares gained 2.8 percent further to $25.10.

Boeing shares dropped 1 percent to $295.03.