By Fabiola Moura and Samy Adghirni / Bloomberg
Boeing and Embraer are likely to reach a deal after months of talks, Brazil’s defense chief said, setting the stage for the second alliance between major planemakers in six months.
The negotiations “are getting closer” to an agreement, Defense Minister Joaquim Silva e Luna said in an interview Tuesday.
“I would say, in short, this will end in marriage,” he said.
Silva e Luna’s comments suggested that Brazil has an increasingly favorable view of the discussions, a key consideration since the government has the power to block a deal. A tie-up would extend a major shift in the commercial-aircraft industry that was triggered in October when Airbus agreed to take control of Bombardier’s C Series jet — a competitor to an Embraer plane debuting this year.
Embraer rose 4.6 percent to 21.96 reais at 12:05 p.m. in Sao Paulo, jumping after Bloomberg News reported the minister’s comments. Boeing climbed 3.6 percent to $334.14.
Neither company responded immediately to requests for comment.
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