President Bolsonaro’s new right-wing government has said it is definitely not happy about the Boeing-Embraer deal in its current format, but it’s unlikely to stop the deal entirely.
In a statement yesterday Brazil’s National Security advisor expressed considerable concern that that Boeing, while only taking 80% of the company now, would be entitled at a later date to the remaining 20%.
Boeing has conceded that at least for now the company will be run by local managers and the Brazillian CEO will only report to Boeing’s CEO Dennis Muilenberg or his successor.
Brazil wants more certainty over the local control element and a gurantee, that Embraer and its indutrial base will not be moved out of Brazil, once the deal has gone through and time has passed. In other words its very aware that big corporate buy-ups like this all too frquently are about assets and technology rights, more than they are about people and national resources.
Brazil is very proud of its aviation industry, rightly so, and it has no wish to see a jewel in its industrial crown removed quietly by Boeing in the coming years.