Boeing and Embraer are in tie-up talks

First it was plane makers in Canada and Europe. Now companies in the United States and Brazil might get hitched....

Posted: Dec. 22, 2017 7:42 AM
Updated: Dec. 22, 2017 7:42 AM

First it was plane makers in Canada and Europe. Now companies in the United States and Brazil might get hitched.

Plane makers Boeing and Embraer issued a joint statement Thursday confirming the "companies are engaged in discussions regarding a potential combination, the basis of which remains under discussion."

"There is no guarantee a transaction will result from these discussions. Boeing and Embraer do not intend to make any additional comments regarding these discussions," according to the statement. Any agreement would be subject to approval by their respective boards, shareholders and the Brazilian Government, the statement added.

Related: Will Airbus and Bombardier's partnership push Boeing closer to Brazil?

The Wall Street Journal first reported that Boeing, the world's largest maker of planes, and Brazil's Embraer, the third, had held talks about a possible takeover. But approval by the Brazilian Government remained the largest sticking point.

Shares of Embraer rose more than 28% during trading on Thursday.

In October, European Airbus agreed to acquire a 50.01% stake in Canadian plane maker Bombardier's new C Series single-aisle jet.

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