SAO PAULO/RIO DE JANEIRO, April 12 (Reuters) - A new proposal for the tie-up between planemakers Boeing Co and Embraer SA that was submitted to Brazil's government on Tuesday brings the deal closer, but there are still issues to be ironed out, four people with knowledge of the matter told Reuters.
The companies still need to define Boeing's final stake in a new joint venture containing Embraer's commercial aviation business, which is likely to be just over 80 percent, according to two of the sources. They said Brazil's government, which can veto the deal, is also looking to ensure that Embraer, which would keep its defense and business jet divisions, will retain the engineering capacity to design and build new aircraft.
The deal is expected to go before President Michel Temer in the coming weeks, according to two other sources. (Reporting by Brad Haynes in Sao Paulo and Rodrigo Viga Gaier in Rio de Janeiro Editing by Phil Berlowitz )