Boeing to rename Embraer commercial division
By Wings Staff
Boeing intends to rename Embraer SA’s passenger jet division as Boeing Brasil Commercial, according to a report by Reuters, once the previously announced deal between the two companies is finalized.
Back in July 2018, Boeing and Embraer signed a Memorandum of Understanding to establish a joint venture comprising the commercial aircraft and services business of Embraer. The companies are also working to create another defence-focused joint venture around the KC-390 aircraft.
Under terms of the agreement for the commercial aircraft transaction, Boeing would hold an 80 per cent ownership stake in the joint venture and Embraer would own the remaining 20 per cent. The agreement valued 100 per cent of Embraer’s commercial aircraft operations at US$4.2 billion.
In January 2019, Embraer and Boeing received approval by the Government of Brazil concerning the strategic partnership. At the time, the companies also agreed to terms of the KC-390 joint venture, which would see Embraer own a 51 per cent stake with Boeing owning the remaining 49 per cent.