Industry Embraer´s Board of Directors confirms approval for Boeing deal
Embraer has announced, that the company´s Board of Directors has confirmed the approval for the Boeing deal.
The board ratified its prior approval for the intended cooperation between Boeing and Embraer, which is said to accelerate growth in global aerospace markets. Additionally, the Government of Brazil has also authorized the transaction.
Embraer stated, that the closing of the transaction will still remain being subject to shareholder and regulatory approvals. Moreover, customary closing conditions will apply. Boeing and Embraer seek to have the transaction closed and fully confirmed by the end of this year.
This approval from Embraer comes after both companies approved their specific terms for the joint venture. If everything is agreed, Boeing will take over the commercial aircraft and services operations of Embraer. While Embraer will hold 20 percent ownership, Boeing will decree over the 80 percent majority.
In addition, both companies have also agreed on terms for another joint venture. Boeing is set to own a 49 percent stake in Embraer´s multi-mission airlift KC-390 programme. Embraer will still hold the majority with 51 percent.
Initially, Boeing and Embraer announced the joint venture last year, after Airbus acquired Bombardier´s C-Series programme. The new developments in the civil aircraft branch could mean, that soon a duopoly could find its way into the civil aviation industry. Boeing and Airbus are the two major players, while smaller companies like Embraer, Bombardier, COMAC or Irkut are trying to compete with the big companies.
The takeover of Embraer´s civil aviation segment by Boeing represents a major change in the industry. Embraer is well-known for its successful E-Jet series, which consists of the E170/175, the E190/195 and the Lineage 1000. All aircraft types will experience a new generation, the E2.
Since founded in 1969, Embraer has delivered a total of 8,000 aircraft, which transport over 145 million passengers a year. Together, every 10 seconds an Embraer aircraft takes off somewhere in the world. The company is also the leading manufacturer in the 150 seats segment for commercial jets, underlining its strong position on the market.
Source © embraer.com