Boeing and Embraer Deal Approved by Brazilian Government
The Boeing and Embraer partnership has today been approved by the Brazilian Government, who only weeks prior to this announcement put the deal on hold casting an element of doubt on whether the partnership would go through.
The new strategic partnership should help both companies accelerate their growth in the global aerospace markets. It’s a deal which has been a long time coming and will see Boeing hold an 80% ownership stake in Embraer, while Embraer holds the remaining 20%.
The move will allow Boeing to better dip into the regional sector of the aviation industry, a market currently seeing the A220, formally known as the CSeries dominate with multiple new orders coming through since the full rebrand.
In addition to the announcement of the strategic partnership, the pair has agreed on terms to the multi-mission medium airlift known as the KC-390. Embraer will own a majority 51% stake in the joint venture while Boeing will own the remaining 49% left over.
The deal/transaction is expected to close by the end of this year, However, before then the board of directors and Boeing need to approve the terms and the partnership needs to go through the shareholders.