Boeing Buying Stake in Embraer Operations for $4.2B
In this Nov. 6, 2018, file photo models of a Boeing passenger airliner are displayed during the 12th China International Aviation and Aerospace Exhibition, also known as Airshow China 2018, in Zhuhai city, south China's Guangdong province. Boeing is buying a majority stake in Embraer’s commercial aircraft and services operations for $4.2 billion. The joint venture announced Monday, Dec. 17, gives Boeing 80 percent ownership of those operations, with Embraer owning the remaining stake.
AP photo by Kin Cheung
CHICAGO (AP) — Boeing is buying a majority stake in Embraer's commercial aircraft and services operations for $4.2 billion.
The joint venture, announced Monday, gives Boeing 80 percent ownership of those operations, with Embraer owning the remaining stake.
Boeing will have operational and management control of the company. Embraer will keep consent rights for some decisions, such as the transfer of operations from Brazil.
The deal still needs approval from the Brazilian government, as well as shareholders and regulators.
The companies also agreed to another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent. The transaction is targeted to close by the end of next year.