Boeing and Brazil Aviation Industry Collaborate on Negotiations Brazilian govern

Aircraft makers Boeing (BA.N) and Embraer (EMBR3.SA) said Thursday the two sides are discussing "potential cooperation." With the release of the Brazilian government, the deal will strengthen the global duopoly of passenger aircraft.

After the announcement, Embraer shares both rose more than 20% in New York and Sao Paulo, closing at $ 4.5 billion. The statement did not disclose details of the structure of the deal. Boeing shares fell nearly 1%.

A top Brazilian government official told Reuters that the Brazilian government has vetoed the strategic move by Embraer and will back the company's cooperation with Boeing in commercial aviation but will oppose any takeover attempt.

 
Two months ago, Boeing rival Air.PA agreed to acquire a majority stake in the Bombardier (BBDb.TO) C-series aircraft business. The C Series is a direct competitor to Embraer's E-Jets business. Reuters reported at the time that the deal could push Boeing and Embraer closer to each other.