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Brazil has said it will not allow Boeing to take over aerospace and defense firm Embraer.
Embraer first confirmed in December that it was in discussions with Boeing over a potential deal. Embraer is the third largest producer of civil aircraft, after Airbus and Boeing.
The Brazilian government holds a controlling "golden share" in Embraer and can veto any deal agreed.
In an interview with the Financial Times, Brazil's defence minister said that his government would allow a partnership or joint venture but ruled out any change of ownership to Boeing.
"The only limitation we see is the transfer of shareholding control," Raul Jungmann said. "Other than that, partnership, joint venture, whatever it is, is very welcome."
The article also cited unnamed sources who are reportedly close to discussions and claim Boeing isn't interested in a joint venture and is only seeking a takeover.
CNBC has contacted Boeing and Embraer for comment but had not had any response at the time of publication.
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