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Brazil studying if Boeing-Embraer deal is in its 'ideal form'

Brazil studying if Boeing-Embraer deal is in its 'ideal form'
FILE PHOTO: The Boeing logo is pictured at the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker   -   Copyright  PAULO WHITAKER(Reuters)
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BRASILIA (Reuters) – Brazil national security adviser Augusto Heleno said on Monday that the government is studying whether the deal between planemakers Embraer <EMBR3.SA> and Boeing <BA.N> is in its “ideal form” or in need of changes.

Embraer in December agreed to sell 80 percent of its commercial aviation business to Boeing for $4.2 billion (£3.2 billion). The deal requires the government’s blessing to go forward.

Heleno, speaking to reporters at a press conference, added that the government was not “thinking of interrupting negotiations.” He said the government wants a deal that will be “the best possible for the country.”

President Jair Bolsonaro on Friday expressed concern about a provision in the agreement that would allow Boeing to end up with 100 percent of the commercial division business, extinguishing Embraer’s participation. He described the Brazilian planemaker, which is a private company, as part of the national “patrimony” and said he did not want to see it “pass to the other side,” in a reference to full Boeing ownership.

Before becoming president, Bolsonaro and his advisers spoke favourably of the Boeing-Embraer deal, but without addressing specific details.

(Reporting by Ricardo Brito; Editing by Chizu Nomiyama and Steve Orlofsky)

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