India seeks Embraer commercial unit, but plan is denied

The Indian government has expressed interest in acquiring the commercial aircraft division of Embraer, according to reports originally published by the newspaper Business Standard India in late September. Following the collapse of Embraer's planned agreement with US-based Boeing, the Indian government reportedly initiated early talks and considered partnering with a sovereign wealth fund backed by India's international reserves to finance a transaction.

Embraer has faced pressure after conducting mass layoffs and recording weak financial results caused by the covid-19 pandemic.

In response to the reports, Embraer denied that any sale negotiations are underway. The company stated to the website Aeroin that it has no plans to sell its commercial aviation unit or any other business area. Embraer affirmed it remains open only to discussing growth partnerships for specific projects or market expansion.