EMBRAER: Company Denies News Of Agreement With Boeing

(RTTNews) - Brazilian aircraft maker Embraer denied that it has already reached an agreement to create a joint venture with Boeing. Embraer's statement came in reaction to an "O Globo" report stating that the firms would create a new company in which Boeing would have a 51% stake and Embraer the remaining 49%.

Embraer said that so far there is no definition of the structure of the business and it is also no guarantee that a possible agreement will be reached.

"To date, there is no definition on the structure of that business combination, including stakes that both sides will eventually have if that business combination is to be implemented," the company said in a statement.

"Embraer affirms that there is no guarantee that the business combination will come to fruition. When defining the structure for a business combination, its eventual implementation will be subject to the approval not only by the Brazilian government, but also by the national and international regulatory agencies, and the corporate bodies of both companies," Embraer added.

According to the report, the percentage would have been a requirement of the Brazilian government, approved by Boeing.