Posted on: 11 January 2019 by Kimberley Young
Embraer and Boeing have received approval from the Government of Brazil for the planned strategic partnership of the two companies.
The government approval follows the announcement last month that the two companies had approved terms for the joint venture (JV) which comprises the commercial aircraft and services operations of Embraer. Boeing will hold an 80% ownership stake in the new company and Embraer will hold the remaining 20%.
The companies have also agreed to the terms of another JV to promote and develop new markets for the KC-390. Embraer will own a 51% stake in the JV with Boeing owning the remaining 49%.
On 11 January Embraer’s Board of Directors ratified its prior approval regarding the strategic partnership with Boeing.
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.