Brazil will leave the fate of the Boeing Embraer deal to the next president


Brazilian carrier Embraer will be seen on July 24, 2018 in Sao Jose dos Campos, Brazil. Photo taken on 24th July 2018. REUTERS / Roosevelt Cassio

RIO DE JANEIRO (Reuters) – Brazil will decide whether to approve the sale of a majority stake in Planemaker Embraer SA (Reuters)EMBR3.SA) Airliner business to Boeing Co (BANDefense Minister Joaquim Silva e Luna told Reuters on Friday about the next administration.

This is a reversal of Luna's remarks in August when he said that the current administration of President Michel Temer will make a decision after the end of Sunday's election but before the January 1 transition to the next government.

Embraer and Boeing agreed to the deal in July, but the Brazilian government, which has a special share class of the planning firm vetoing important business decisions, has yet to sign.

Luna said negotiations over the deal's final details had stalled due to electoral uncertainty. The expectation now is that the discussions will accelerate once a president has been elected.

"But that does not mean it will not come through," Luna said of the deal.

Jair Bolsonaro, the far-right candidate who widely expects to win Sunday's election by a wide margin, has said in the past that he supports the deal. His rival, the left Fernando Haddad, spoke against it.

Luna said the deal is likely to be presented by the current government to the transition team appointed by the future elected president.

"We will certainly call the transition team to talk about the deal, and the idea is to make everything clear and transparent," Luna said.

Under the terms of the proposed deal, Boeing will pay $ 3.8 billion to own 80 percent of a new joint venture that will hold Embraer's business jet business. Embraer remains with its private jet and defense divisions.

Reporting by Rodrigo Viga Gaier; Letter from Marcelo Rochabrun; Cut by Susan Thomas

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