Brazilian Workers Reject Sale of Aerospace Firm to Boeing

Brazil's Workers Party (PT) has issued a public statement condemning attempts to sell leading aerospace firm Embraer to U.S.-owned Boeing as "an aggression against national sovereignty."

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"It should be emphasized that companies throughout the world developing dual and military tecnology, such is the case with Embraer, are tightly regulated by their governments given the evident strategic character of their production," the statement reads.

The missive is signed by the PT senator representing the state of Rio de Janeiro, Lindbergh Farias, and the PT congressman representing the state of Sao Paulo, Carlos Zarrattini.

It goes on to assert that the party's members will remain vigilant in light of this "new aggression against national sovereignty and will not allow (Michel) Temer's government to endorse the handover of our main aerospace company."

The statement also notes that PT is unaware of exactly how the "coup government" is treating the interest Boeing has shown in acquiring Embraer.

However, "in light of the shameful, servile nature of the Temer administration, we have no doubt that such a government may be endorsing the actual sale of Embraer and transfering its majority share to Boeing."

Initial reports that Boeing is negotiating the purchase of Embraer appeared in the Wall Street Journal. 

The Brazilian-owned aerospace company is currently valued at roughly US$3.7 billion dollars. However, the final sale is dependent on whether the Brazilian government vetoes the transaction. 

The Metalworkers Union of Sao Jose dos Campos, the city where Embraer's headquartes are located, has also expressed its objections to the sale. 

In a public statement, the union stressed that the aerospace company is "strategic to the country and can't be sold to foreign capital."

"We demand that the federal government veto the sale and, ultimately, re-nationalize Embraer as a means to preserve and reestablish this national asset," the union said.

The U.S. aerospace group has yet to make a formal offer and its final structure would be driven by talks that are expected to resume in coming weeks, but sources say the aim is to go well beyond traditional joint ventures or an equity infusion.

"A broader combination would be preferred, but Boeing is sensitive to concerns the government may have about issues like defense," a source with direct knowledge of the discussions told Reuters. "If those can be addressed... this deal can get done."