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Boeing-Embraer: strategic partnership taking shape

The industries now expect the transaction to close in early 2020

Boeing and Embraer continue to work closely together to establish their strategic partnership, positioning both companies to deliver greater value to airline customers and the flying public, and to accelerate growth in global aerospace markets.

Since receiving approval for the partnership from Embraer shareholders in February this year, the companies have undertaken diligent planning for the creation of a joint-venture made up of the commercial aircraft and services operations of Embraer. The US industry will own 80 percent of the new company, to be named Boeing Brasil – Commercial. The Brazilian company will hold the remaining 20 percent.

The transaction remains subject to regulatory approval; the two companies are actively engaged with authorities in relevant jurisdictions and have obtained a number of regulatory approvals. Following a detailed assessment by the US Federal Trade Commission, the parties' strategic partnership has received clearance to close in the United States. The European Commission recently indicated it will open a Phase II assessment in its review of the transaction, and both companies look forward to assisting with that review. Based on this development, however, the companies now expect the transaction to close in early 2020.

The two industries are also preparing to launch a joint-venture to promote and develop markets for the multi-mission medium airlift KC-390. 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. Two KC-390 milestones were recently achieved by Embraer: the first KC-390 aircraft was delivered to the Brazilian Air Force, and the first international purchase was announced by Portugal.

The comprehensive strategic partnership, embodied through these two joint-ventures, will position the companies to compete in the global marketplace, to deliver greater value to customers, and to boost the Brazilian aerospace industry as a whole.

See for details AVIONEWS.

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