The Government of Brazil has finally approved the JV company to be formed between Embraer and Boeing, which was challenged in court by Brazilian politicians and labour unions. According to the new JV deal, Boeing will hold an 80 percent ownership stake in the new company and Embraer will hold the remaining 20 percent. In the deal Boeing would acquire the control of the Embraer’s commercial aircraft and services operations for $4.2 billion.
Once Embraer’s Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents., and expected to close the del toward the end of 2019.
The Embraer E-jets are 76- to 130-seat regional airplanes, a size just below Boeing’s 737 MAX family aircraft. With this agreement, Embraer’s engineers will do design work for future Boeing airplanes, including potentially the New Mid-market Airplane or 797 that’s expected to launch in 2019.