The government of Brazil will not interfere in the ongoing review process regarding the merger of Boeing (BOE, Chicago O'Hare) and Embraer (EMB, São José dos Campos) but remains cautious about the proposed form of the joint venture, Reuters has reported.

"We discussed today that we need to review if this is ideal, or if we can negotiate another solution. The deal involves not only physical assets but hard-earned technology know-how, that we wouldn't like to lose," national security adviser Augusto Heleno said at a press conference, according to Folha de S. Paulo.

President Jair Bolsonaro expressed his concerns earlier in January that the JV could eventually lead to Boeing assuming full control of Embraer's civilian operations.

According to the proposed setup of the joint venture, which is now under judicial review, the American manufacturer would assume an 80% stake in the new firm for USD4.2 billion, while Embraer would own the remainder. The JV would only include Embraer's civilian assets, with the military wing remaining separate and detached from the cooperation with Boeing.

The management of the new JV would also sit in Brazil and report directly to Boeing's CEO.

The conclusion of the deal requires approval from the Brazilian government, which currently owns a golden share in Embraer. The deal has been opposed by labour unions and left-wing opposition politicians in Brazil.