Boeing Co. will control 51% of a joint venture being negotiated with the Brazilian aircraft maker Embraer SA, Reuters reported, citing the Brazilian newspaper O Globo.

The Brazilian government reportedly demanded that the U.S. company hold no more than a 51% share, to which Boeing agreed. Boeing seeks to partner with Embraer to create a new company focused on commercial aviation.

Boeing initially planned to acquire Embraer but the Brazilian government rejected the proposal, citing security reasons. Brazil's Defense Minister Raul Jungmann told reporters on Feb. 22 that negotiations on creating a third company were progressing.

The Brazilian government holds a so-called "golden share" in Embraer, allowing it to veto any strategic decisions, including Boeing's proposed acquisition.