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Brazil's Congress should weigh in on Embraer-Boeing deal -lawmaker

Published 2018-08-13, 08:51 a/m
Updated 2018-08-13, 09:00 a/m
© Reuters.  Brazil's Congress should weigh in on Embraer-Boeing deal -lawmaker

RIO DE JANEIRO, Aug 13 (Reuters) - Brazil's Congress should be consulted on a plan for U.S. plane-maker Boeing (NYSE:BA) to take over the commercial jet unit of Embraer SA EMBR3.SA, the speaker of Brazil's lower house of Congress said in a newspaper interview published on Monday.

The preliminary deal, announced last month, has drawn fire from presidential candidates in Brazil who are concerned about preserving jobs and keeping Embraer competitive. A congressional review could further complicate the politics of a tie-up aimed at challenging the alliance of Airbus SE AIR.PA and Bombardier Inc BBDb.TO . is a publicly listed company and about 80 percent of its shares are held by foreign investors, but since its privatization Brazil's government has held a so-called golden share giving it veto rights over strategic decisions.

"I always insist that, when you are going to sell any state asset, the people must be heard through the parliament," Speaker Rodrigo Maia said in comments published in the Valor Economico newspaper.

"Should Congress ratify the government's position regarding the golden share? ... In principle, I defend that. I think you need a position from Congress," he said, according to the paper.

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