The share price in Brazilian airplane manufacturer Embraer soared yesterday as markets reacted favorably to the country’s President Jair Bolsonaro approving a merger with us giant Boeing.
The share price jumped 7.43 per cent on the Sao Paulo stock exchange, despite Ibovespa falling 0.28pc. It came a day after Bolsonaro announced he wouldn’t be using his veto powers to block the merger between two of the world’s three biggest aviation companies. Embraer’s shares had taken a nose dive last week after Bolsonaro had expressed concerns over the deal.
But now the $5.2 billion deal, which will see Boeing take control of Embraer’s commercial airplane manufacturing business -- 80pc of its operation -- will go ahead. Embraer will only retain control of its military division. On Thursday, Bolsonaro had said he was satisfied that “the final proposal preserves (Brazil’s) sovereignty and national interests.