Brazil OKs Boeing-Embraer Joint Ventures on Airliners, KC-390 Airlifter

Embraer and Boeing Welcome Brazilian Government Approval of Strategic Partnership

(Source: joint Boeing / Embraer release; issued Jan 10, 2019)

Brazil’s incoming President Jair Bolsonaro chairs a meeting of officials from the Ministries of Defense, Science and Technology, Foreign Relations and Economics which approved the partnership between Embraer and Boeing. “It is clear that the sovereignty and interests of the nation are preserved,” he said, adding that Brazil “does not oppose the march of progress.” (BR govt photo)

SÃO PAULO and CHICAGO --- Embraer and Boeing have welcomed approval by Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.

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.

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 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.

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