Boeing, Embraer Prepare Contracts of Proposed Merger

Boeing and Embraer have prepared contracts of their proposed tie-up and are expected to submit them to the Brazilian government within two weeks, Brazilian newspaper reported.

The proposed merger, which would need the go-ahead from the Brazilian government, would leave Boeing as the majority partner, according to Valor Economico report on its website Monday.

Embraer would however keep sole control of its military activities. Valor said the two aircraft manufacturers had "already prepared the memorandums of understanding and requested a meeting to present" their project to the Brazilian government.

Embraer told AFP that it was in "advanced negotiations" over the deal but refused to comment on details.

Embraer was founded as a state group in 1969 before being privatized in 1994, although the Brazilian government retained the right to make strategic decisions for the company.

Valor said the two companies expect the meeting to take place "in the next two weeks."