Embraer draws interest from possible foreign buyers

Shares of Embraer rose 17% on Friday following news that Chinese manufacturer COMAC has expressed interest in joining with the world’s third-largest commercial airplane manufacturer. Boeing axed plans to buy 80% of Embraer’s commercial unit in April, ending a planned move into regional jets that mirrored rival Airbus’ purchase in 2018 of a competing model developed by Canada’s Bombardier.

India has informally conveyed interest at government level while still studying the matter, sources claimed.

R.K. Tyagi, ex-chairman of state-run Hindustan Aeronautics, said he had written to the government urging it to move fast.

“Any country with ambitions will look at this. I feel this is a good opportunity. Valuation is down and if we get control of a modern, proven aircraft programme, it is a big jump.”

Russian aircraft manufacturer Irkut has also explored the issue, two others said, though the company denied any current interest.

The talks at this stage are preliminary, and it is possible a deal with either China or Russia could face pushback from the U.S.