Plane Makers Boeing and Embraer Close to Finalizing Deal

A report by news agency Reuters says Boeing and Embraer “have prepared contracts of their proposed tie-up and are expected to submit them to the Brazilian government within two weeks, Brazilian newspaper Valor Economico reported on its website” today.

In April the two aircraft manufacturers were in talks to set up a new company setting sights on commercial aviation. The deal would exclude Embraer’s defense division and possibly its business jet unit. The three business segments of Embraer, and how to deal with those, had been delaying the deal, the Reuters piece said.

The report says the contracts define how Boeing and Embraer’s engineers will be utilized in the new company, which would be controlled by Boeing, and a defense company that Embraer will retain.

Embraer said “talks are still ongoing” without elaborating on contracts or potential end date for the talks and the conclusion of the talks is near, according to the Brazilian paper. No comment from Boeing.