Embraer Surges on Talks to Merge Air Mobility Unit With SPAC

Brazil’s Embraer SA surged as much as 15% Thursday after confirming that it’s in talks to merge Eve Urban Air Mobility, its electric vehicle takeoff and landing unit, with Zanite Acquisition Corp.

The talks with the special purpose acquisition company are ongoing and could end without an agreement, Embraer said Thursday in an emailed statement, confirming an earlier Bloomberg report. The deal is slated to value the combined entity at about $2 billion, according to people with knowledge of the matter, although terms could change.

Shares of Embraer surged 12% to 19.38 reais at 11:25 a.m. in Sao Paulo, and ...