Boeing Co will have a 51 percent stake in venture with Embraer

Vastavam web: Boeing Co will have a 51 percent stake in a joint company currently being negotiated with Brazilian aircraft maker Embraer, O Globo newspaper columnist Lauro Jardim reported on Sunday.Boeing has agreed to a Brazilian government demand that the U.S. company have no more than a 51 percent controlling share, Jardim said, without citing sources.Boeing has sought Brazilian government approval of the partnership with Embraer that would create a new company focused on commercial aviation, excluding Embraer’s defense unit, Reuters reported three weeks ago.Embraer is the world’s third largest planemaker and the leader in the 70-seat to 130-seat regional jet market.

With the proposed tie-up Boeing would be the market leader in the smaller passenger jet market, creating stiffer competition for the CSeries aircraft program designed by Canada’s Bombardier Inc and backed by European rival Airbus SE.Boeing’s initial plan to buy Embraer was rejected by the Brazilian government because it did not want a foreign company to control its defense unit for strategic security reasons.