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After Failure With Boeing, Embraer May Be Sold to India

Written by Flavia Marinho
Published on 06/10/2020 at 16:38
Embraer e ìndia
O governo da Índia afirmou seu interesse em adquirir um pedaço da brasileira Embraer, que desfez meses atrás um acordo com a Boeing
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The Government Of India Expressed Its Interest In Acquiring A Piece Of The Brazilian Embraer, Which Canceled Months Ago An Agreement With Boeing

After Boeing Walked Away From Buying Embraer During The Pandemic, the company returned to operate independently. However, even back then, the Brazilian government had already announced that two countries were interested: China and India. 2,500 Jobs Were Cut By Embraer In Brazil And Workers Feel The Impact Of The Crisis Caused By The Coronavirus

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Alongside China, the manufacturer Comac faces serious difficulties in project approvals with aerospace regulatory bodies, such as the American FAA. Meanwhile, India has been experiencing a period of commercial expansion in various industries, which has increased interest in Brazilian Embraer.

The information was first reported by the newspaper Business Standard. According to the publication, the Indian government sees the acquisition of Embraer’s commercial division as a major interest. A government source revealed that “We are very interested. We are exploring alternatives.”

To carry out the acquisition, financing from the government fund would be necessary. This was the first time the Indian government admitted its real interest in the Brazilian company.

The information comes months after rumors raised by Reuters that Russia, India, and China, also BRIC members, could be interested in Embraer’s division, weeks after the cancellation of the agreement with Boeing.

The latter had an agreement to acquire the Brazilian manufacturer’s commercial jet division but backed out at the last minute for reasons not clearly disclosed – Embraer and Boeing accused each other of breach of contract and took the contractual dispute to court.

The purchase by India could be something that would please the Brazilian government, as it is an emerging market with rapidly growing aviation. It is worth noting that, despite being a minority shareholder through BNDES, the Brazilian government holds a golden share, which has the power to veto any decision made by the investors’ council, even though the company is private.

“The Brazilian government would naturally support any contribution to Embraer and the strengthening of bilateral relations,” said an unidentified person from the Brazilian embassy to the Indian newspaper.

Embraer Statement

Embraer, for its part, issued a statement saying that it has no plans to sell any of its units at this time. Here is the statement:

“There are no plans to sell the commercial aviation unit or any other business area. The company is open to discussing only growth partnerships aimed at specific projects or entry into markets.”

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Flavia Marinho

Flavia Marinho é Engenheira pós-graduada, com vasta experiência na indústria de construção naval onshore e offshore. Nos últimos anos, tem se dedicado a escrever artigos para sites de notícias nas áreas militar, segurança, indústria, petróleo e gás, energia, construção naval, geopolítica, empregos e cursos. Entre em contato com flaviacamil@gmail.com ou WhatsApp +55 21 973996379 para correções, sugestão de pauta, divulgação de vagas de emprego ou proposta de publicidade em nosso portal.

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