Boeing shares closed lower in the US Thursday, following confirmation it was in tie-up talks with Brazilian plane maker Embraer. Embraer shares closed sharply higher on the news.
Any deal between the two aeroplane manufacturers would require approval from the Brazilian government, which owns a stake in Embraer.
Boeing shares ended the Thursday US trading day 0.96% lower at $295.03. Embraer shares closed higher at $24.42.
Statement confirms talks
Boeing and Embraer both issued statements confirming they were in discussions.
“The Boeing Company and Embraer today confirmed the two companies are engaged in discussions regarding a potential combination, the basis of which remains under discussion” the statement on Boeing’s website read.
“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. Any transaction would be subject to the approval of the Brazilian government and regulators, the two companies’ boards and Embraer’s shareholders,” it went on to state.
News of talks between the two firms follows the recent tie-up between Bombardier and Airbus. Airbus has become a major stakeholder in Bombardier’s C-Series project, a move that is designed to be beneficial to both.
Embraer is known for its manufacture of smaller commercial jets, similar to Bombardier’s core business. Earlier in December, Embraer delivered it’s 1,400th jet to American Airlines - a customer of the Brazilian plane maker for almost 20 years.
Boeing secures Fly Dubai order
In other news on Boeing, the US plane maker also announced Thursday it had secured an order for 175 new planes from the Fly Dubai airline.
The initial commitment to the deal was announced at the Dubai Air show. Now, however, the deal has been confirmed.
"We are excited to finalize this landmark agreement with our partners at flydubai and we thank them for placing their trust in the 737 MAX family," said senior vice president of sales and marketing at Boeing Commercial Airplanes, Ihssane Mounir.