As the final link in the chain joining Embraer and Boeing in a critical strategic partnership, the Brazilian company’s shareholders have overwhelmingly approved the deal. Boeing’s ownership stake of the partnership in commercial aviation and services will be 80 percent to Embraer’s 20 percent.
The agreement affects Embraer’s commercial unit only, with its defense and executive-jet business to remain a “standalone publicly traded company.” As part of the agreement, “a series of support agreements focused on supply chain, engineering and facilities would ensure mutual benefits and enhanced competitiveness between Boeing, the joint venture and Embraer,” according to a statement by Embraer.
Embraer shareholders also agreed to a separate joint venture to promote and develop new markets for the medium airlift KC-390. In this case, Embraer will own a 51 percent stake in the joint venture, with Boeing getting 49 percent.
“Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies. This strategic global partnership will build on Boeing’s and Embraer’s long history of collaboration, benefit our customers and accelerate our future growth,” said Dennis Muilenburg, Boeing chairman, president and chief executive officer.
This agreement goes back to December 2018. In January 2019, Boeing and Embraer obtained approval from the Brazilian government to proceed, which was soon followed by approval of Embraer’s board of directors. The two aerospace companies hope to have the transaction finalized by the end of 2019.