Boeing Spends $4.2B for Embraer
CBJ — Boeing is buying an 80% majority stake in Embraer’s commercial aircraft and services operations for $4.2 billion.
Boeing acquisition will give Boeing operational and management control of the company. Embraer will keep consent rights for some decisions, such as the transfer of operations from Brazil.
The deal still needs approval from the Brazilian government, as well as shareholders and regulators.
The companies also agreed to another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390, a defence aircraft. Embraer will own a 51% stake in the joint venture, with Boeing owning the remaining 49%. The transaction is targeted to close by the end of next year. The deal is also subject to shareholder approvals at both Embraer and Boeing.