The office of Brazil’s new president Jair Bolsonaro said he would not block Boeing’s proposed purchase of 80% of Embraer’s commercial business.

“The president was informed that the various scenarios had been thoroughly assessed and that the final proposal preserved sovereignty and national interests,” the presidency said. “Given this, the Golden Share will not be exercised to the business.”

Speculation had emerged in recent weeks that Bolsonaro might oppose provisioning in the deal that allowed Boeing to buy out Embraer in the future. The issue was not addressed directly in the presidency’s statement.

The office said Bolsonaro and ministers were presented with terms of the deal, ostensibly the same terms that were agreed to by the companies in December.

Boeing and Embraer said they “welcomed approval by the government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.”

Once Embraer's board of directors ratifies its prior approval, the two companies then will execute definitive transaction documents, the companies said in a statement late Jan. 10. Closing of the deals are subject to shareholder and regulatory approvals and customary closing conditions.

“Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019,” they said.

Michael Bruno/Aviation Week