boeing and embraer
Boeing and Embraer Talks
Vocabulary
| media | regional | specialize |
| jet | stake (3) | according to |
| hope | compete | aerospace |
| allow | deal (3) | pressure (2) |
| expand | chain (2) | supply chain |
| acquire | run afoul | headwind (2) |
| confirm | segment | grow/grew/grown |
| face (3) | cut costs | announce |
| joint (3) | regulator | joint venture |
| abroad | foothold | mid-sized |
| venture | union (2) | green light (2) |
| support |
Video: Boeing and Embraer Talks
Transcript
Bigger is not always better for the world’s largest aerospace company. Boeing has confirmed it is in talks to buy Embraer, a Brazilian company specializing in smaller jets.
According to media reports, Boeing is hoping to acquire a controlling stake.
The deal would allow both companies to cut costs in the supply chain, and would help Boeing expand its foothold in small to mid-sized regional jet market.
Aircraft makers from Canada, China, Russia, and Japan are competing in this growing market segment.
Boeing is also facing pressure from world number two, Airbus. In October, Airbus announced a joint venture with Bombardier to expand its regional jet production.
But Boeing is already facing headwind, both at home and abroad.
The deal would see Boeing move some of its production outside the US, and that could run afoul of US regulators and unions.
And the Brazilian government would have to green-light any sale of Embraer, something the country’s president, Michel Tamer, said he would not support.
Questions
1. Because Boeing is the largest airplane manufacturer and produces large jets, they feel completely content. Is this entirely true, mostly true, in the middle, yes and no, mostly false or entirely false?
2. Is Boeing definitely going to acquire (a controlling stake of) Embraer?
3. Why does Boeing want to merge with Embraer? What are some advantages of the acquisition?
4. Are there benefits to Embraer as well?
5. Boeing’s acquisition would be an unprecedented move. Is this right or wrong?
6. “But Boeing is already facing headwind.” What does this mean? Do all Americans support Boeing’s merger with Embraer? Why are many Americans skeptical about the benefits?
7. How does the Brazilian government view the takeover? Do they feel positive, negative or mixed about the takeover?
A. Is there a difference between acquisition, merger and takeover, or are they just synonyms?
B. What are the reasons a bigger company wants to take over or control a smaller company?
C. Are takeovers or mergers beneficial to both companies?
D. Are employees in both companies enthusiastic and optimistic or pessimistic and gloomy about mergers and acquisitions, it doesn’t matter or it depends?
E. How do governments of the “predator” and “prey”, the acquiring company and acquired company feel? Do they feel positive, negative or mixed?
F. What will happen in the future?
