BRASILIA- Brazilian planemaker Embraer SA said its subsidiary Eve Urban Air Mobility Solutions has entered merger talks with Zanite Acquisition Corp, a special purpose acquisition company (SPAC), according to a securities filing on Thursday.
Eve, which is developing aircraft in the electric vertical take-off and landing (eVTOL) segment, is one of the first big bets from the EmbraerX innovation division.
The Thursday filing was in response to a Bloomberg News report that Eve and Zanite were in talks for a potential $2 billion deal.
Shares in Embraer were up roughly 13% in the morning trading after it confirmed the talks with Zanite, at 19.60 reais.
"This is positive news for Embraer as the Brazilian aircraft manufacturer has a market cap of US$2.5 billion and just Eve Urban Air Mobility alone could reach a market value of US$2 billion," analysts at Bradesco BBI wrote in a note to clients.
Earlier this week, Eve announced a partnership with helicopter company Helisul Aviation to deliver up to 50 eVTOLs starting in 2026, analysts at Guide added.
(Reporting by Jamie McGeever and Paula Laier Editing by Brad Haynes and Steve Orlofsky) ((jamie.mcgeever@thomsonreuters.com; +55 (0)11 97189 3169; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net))
