Brazil approves Embraer, Boeing deal
By Wings Staff
Embraer and Boeing received approval by the Government of Brazil concerning the strategic partnership previously announced by the two companies in July 2018.
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.
RELATED: Boeing to add Embraer commercial arm in joint venture
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 is expected by the end of 2019 and remains subject to shareholder and regulatory approvals and customary closing conditions.