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.
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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
Boeing and Embraer are preparing to launch a joint venture to promote and develop markets for the multi-mission medium airlift KC-390 while expecting all regulatory approvals for their commercial joint venture by 2020. Under the terms of the proposed partnership, Embraer will own a 51 percent stake in the joint venture and Boeing will own the remaining 49 percent
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
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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
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