Boeing to take over Embraer’s commmercial jets in joint venture deal
Shares in Embraer crashed 7% on the São Paulo stock market on Thursday following the announcement of the agreement
Washington — Boeing will take control of the commercial business of Brazil’s Embraer, the companies announced on Thursday, better positioning the US aerospace giant to compete with rival Airbus in the market for smaller jets. The transaction follows months of talks to allay concerns of the Brazilian government, which had veto power over the transaction and initially resisted ceding control to the US company. Under the terms of the deal, Boeing will hold an 80% stake in the commercial part of Brazil’s Embraer which is valued at $4.75bn, the companies said. The deal would allow Boeing to offer planes with capacity up to 150 seats, a market it does not currently compete in. It follows a similar strategic partnership by European arch-rival Airbus with Canada’s Bombardier last October. Boeing will have operational and management control over the new venture, which will be led by a Brazil-based chief who will report to Boeing CEO Dennis Muilenburg, who said, "By forging this strategic par...
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