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Introduction

Sept. 10, 2018, © Leeham News: With the Brazilian elections less than a month away, the outcome of the presidential race will determine whether the proposed joint venture between Embraer and Boeing will be approved.

Embraer is Brazil’s most visible and prestigious international company. The government has a “golden share,” giving it veto power over certain transactions, including the Boeing deal. Boeing will own 80% of the new JV that will be for EMB’s commercial business only. Embraer will own 20%.

The incumbent government says it will approve the joint venture; the opposition party says it will veto the deal.

Summary

Including orders, options and LOIs:

• Production slots are oversold through 2023.
• The skyline quality has some challenges.
• Only three dozen firm orders were announced at Farnborough; the balance has to be firmed up.