Boeing in talks with Brazil’s Embraer for a £2.7 billion take-over

The US Aerospace group Boeing is in discussions with Brazil’s Embraer SA, about a £2.7 billion ( $3.7billion) takeover, in the wake of the technological revolution which can see a lot more initiatives of hybrid electric propulsion for commercial aircraft. This blockbuster deal would expand Boeing’s reach into the highly competitive market for small jets.

Boeing is attempting to move into the small jet market, extending its range below the 150-seat segment market following Airbus’s deal to acquire control of rival Bombardier’s regional aircraft programme, the C Series.

The market for smaller aircraft is ripe for consolidation with Embraer, Bombardier, Russia’s Sukhoi and Japan’s Mitsubishi Aircraft Co. all fighting for sales.

The options include a joint venture that would enable the companies to share supplier savings and cross-sell their largely complementary commercial jets.

Brazil holds a golden share in Embraer that gives it veto power over an acquisition and according to reports President Michel Temer is already signaling his discontent putting national pride first.