Embraer Joins With Boeing in Multi-Billion Joint Venture

Brazilian aeronautical conglomerate Embraer announced Monday that their $4.2 billion joint venture with airplane manufacturer Boeing is close to being finalized and awaits approval. Both companies make up the top one-third of all aircraft manufacturing in the world. The deal would see Embraer selling 80 percent of the commercial aviation business to Boeing, and they would assume control of most commercial aircraft and services operations. Boeing will manage these aspects, and Embraer will still exist as its own and control the remaining stake in its commercial operations.

The deal still needs approval from the Brazilian government to be final, as well as a final approval from shareholders within the companies. Most are certain that this deal will go through sooner rather than later, Brazil having just elected a new president who was keen on the deal. Both companies seemed to already benefit from the news, with stock in Embraer going up in Sao Palo and Boeing shares increasing on Wall Street. This also means that Boeing will control almost half of the overall aircraft manufacturing in the world, alongside the other major player Airbus. Embraer expects to see an added $3 billion in revenue from the deal.

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5 years ago