Monday , May 10 2021

After the green clearing of Boeing, the Embraer shares flashed

Embraer's common name grew by 7.7% a day., but that afternoon they went back.

"The company's rating was based on the backing of Lehendakari Jair Bolsonaro, and his approval is one of the greatest steps, although the process is still quite complex, it has not been approved", explained AFP Glauco Legat, Necton analyst.

The loss of initial optimism is, in my opinion, a slow transaction and understanding progress.

Legate excludes the influence of the S & P rating agency. In the afternoon Embraer (now BBB) has been put into negative observation, in the fusion result.

Embraer, a third-world aircraft manufacturer, was privatized in 1994, but the Brazilian government maintained its "golden participation" in the power of strategic issues.

Bolsonaro, on the far right, on January 1, last week feared that the value of $ 5.26 billion would damage the technological capability of Brazil. These expressions caused the collapse of more than 5% of the collective.

but On Thursday, after his chief leaders and three firearms, he announced his decision.

"The Lehendakari informed that the different situations were carefully evaluated and that the latest proposals preserve national sovereignty and interests, and in that context the golden share of business business will not be exercised." He stated the Government's statement.

"It was clear that the sovereignty and interests of the nation are maintained, and the unions do not oppose the continuity of the process," added Bolsonaro on Twitter.

Although the agreement was negotiated under Michel Temer's administration, Paulo Guedes is the first application of the Neoliberal Ministry of Economy, taking measures of privatization, foreign capital and accountability, and encouraging the growth of the country to be weak.

Embraer and Boeing said Thursday that the joint statements made allow "two companies to accelerate the growth of global aerospace alliances," and this year they hope to complete the merger process.

Embraer's Board of Directors must ratify the agreement with the consent of shareholders and regulators of Brazil and the United States.

According to the agreement, Boeing will carry out Embraer's civil activity control of $ 4.2 million, and will control 80% of the capital of the new group. The remaining 20% ​​will be left to the Brazilian company.

The US company will offer the aircraft more than 150 seats capacity, a non-competitive market.

Embraer's military aviation and executive aviation business was excluded.

Both companies will market another Embraer KC-390 freighter, with Brazil's 51% capital and Boeing 49%.

With turnover of $ 6,000 million and about 16,000 employees, Embraer is one of the Brazilian industrial gems, with many civil, military and business aircraft.

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