Brazil OKs Boeing, Embraer JV

Breaking News: Boeing just announced the Brazilian government approved the proposed “strategic partnership” between Boeing and Embraer.

The deal now begins to make the rounds among global governments for anti-trust approvals.

Officials hope the transaction will gain all approvals by the fourth quarter this year.

The press release is below the jump.

Press release from Boeing:

Embraer [B3: EMBR3, NYSE: ERJ] and Boeing [NYSE: BA] have welcomed approval by the Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.

The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent.

The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

Once Embraer’s Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents. The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions. Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019. 

2 Comments on “Brazil OKs Boeing, Embraer JV

  1. so now Boeing can aggressively sell the e195 into the <3ooo NMI 737-7 space and the -7 becomes a special mission only bird (ultra long, hot/high) and their NSA design window can settle on a 737-10 sized center with -8 and 757-250 size shrink/stretch.

    they also get a s*** ton of cheap engineers and a FA site in a low cost country to hold over their union employees (and even their Carolina workforce)

    • Embarer E jets are assembled in Brazil . The main structures are made all around the world, and some in Brazil, by recognised suppliers , including Triumph in Everett Wa.

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