Embraer and Boeing reach consensus on terms of the strategic aerospace partnership in which Boeing will acquire an 80 percent ownership stake in the joint venture for $4.2 billion. The transaction remains subject to approval by the Government of Brazil.
The approved terms define the Joint Venture (JV) comprising the commercial aircraft and services operations of Embraer, in which Boeing will hold an 80 percent ownership stake and Embraer will hold the remaining 20 percent.
After government's approval, Embraer and Boeing intend to execute definitive transaction documents. The closing of the transaction will then be subject to shareholder and regulatory approvals and customary closing conditions, Embraer said in a statement Monday.
The partnership is expected to be neutral to Boeing’s earnings per share in 2020 and accretive thereafter. Estimated annual pre-tax cost synergies of approximately $150 million are anticipated by the third year of operations.
Once the transaction has closed, the commercial aviation JV will be led by Brazil-based management, including a President and CEO. Boeing will have operational and management control of the new company, which will report directly to Dennis Muilenburg, Boeing Chairman, President and CEO. Embraer will retain consent rights for certain strategic decisions, such as transfer of operations from Brazil.
The companies have also agreed to the terms of another JV 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 JV, with Boeing owning the remaining 49 percent, the company further stated.
Boeing has won a $92 million contract for integrated logistics support for 22 F/A-18E and 6 F/A-18F Super Hornet aircraft in support of the government of Kuwait under the Foreign Military Sales program. Boeing F/A-18E and F/A-18F Super Hornet are twin-engine, carrier-capable, multirole fighter aircraft variants based on the McDonnell Douglas F/A-18 Hornet
Boeing has unveiled two new longest-range business jet models of BBJ 777X at the bi-annual Middle East Business Aviation Association Show (MEBAA). Customers can choose between two models: the BBJ 777-8 and BBJ 777-9
Embraer has completed Troop unloading, evacuation by hatch and evacuation tests through the front and rear doors of the KC-390 airlift. The tests were held at Brasília Air Force Base, Brazil
Embraer has completed the maiden flight of the first series production multi-mission medium airlift KC-390. As agreed with the Brazilian Air Force, the aircraft will now join the flight test campaign, in which more than 1,900 flight hours have already been logged
Embraer's shareholders today approved the proposed strategic partnership between Boeing and Embraer during an Extraordinary General Shareholders' Meeting held at the companys headquarters in Brazil. At the meeting, 96
Boeing has won $49 million contract for Maintenance Augmentation Team services for the Qatari Air Force AH-64E aircraft. Work is expected to be completed by July 31, 2024, the US department of defense said in a statement Wednesday
Boeing has won a $307 million United States (US) Navy contract for F/A-18 integrated product support for the A-D and E-G aircraft, US Department of Defense said in a statement Thursday. The McDonnell Douglas F/A-18 Hornet is a twin-engine, supersonic, all-weather, carrier-capable, multirole combat jet, designed as both a fighter and attack aircraft
Boeing has delivered the final Airborne Warning and Control System (AWACS) aircraft modernized with avionics and a digital cockpit to the North Atlantic Treaty Organization (NATO) in Manching, Germany. This delivery is the final of 14 and ensures NATO AWACS compliance with current and future air traffic control and navigation requirements, the company said in a statement Tuesday
First 2300 ton Corvette for Pakistan Navy Launched by DAMEN Shipyard, Romania
Greek Navy Gets Modernised P-3B Maritime Surveillance Aircraft
Boeing Wins $164M To Modernize US Navy's Super Hornets
Indian Navy Conducts Co-operative Engagement Test with Barak Missile
Russian S-400 System Requires Friendly Aircraft Data to Identify Friend or Foe
India, UK Likely To Build HMS Queen Elizabeth-Type Supercarrier
Chinese Navy Retires 4 Destroyers Days after Commissioning 2 New Warships
High Price Of F-16 May Sway Bulgaria To Favour Eurofighter Typhoon Or...
Russian state-run Almaz-Antey has released additional data on its latest export-version of Buk-M3 Viking air defense missile system (ADMS)
The MiG-29, one of Russias most exported military jet has been upgraded in India that expands its capabilities from an...
Russian fifth generation fighter aircraft (FGFA) Su-57 will for the first time perform flights during the ARMY 2018 event near...
The American-made Patriot and Russian S-400 Triumf air defense systems are currently hogging international orders despite their price tags running...
The Russian ministry of defense on Thursday published a series of videos showcasing the production, deployment and installation and testing...
The market for fighter jets in countries which are expected to have open competitions is estimated at US$50 billion to...