The Brazilian government has approved the joint venture deal between aircraft manufacturers Boeing and Embraer.
The partnership agreement, which was announced during the Farnborough Airshow 2018 in July, was put on hold by a Brazilian court in December. Uncertainties remained after the election of Brazil’s new president Jair Bolsonaro, who criticised Boeing for intending to take over Embraer’s defence business.
Boeing plans to take control of Embraer by creating a joint venture and with that better compete against rivals Airbus and Bombardier, which formed a joint venture for the construction and sale of the Airbus A220 (formerly known as Bombardier CSeries) in July 2018.
As part of the planned joint venture, Boeing will acquire an 80% ownership stake, while Embraer will hold the remaining 20 percent. Furthermore, the Brazilian regional jet manufacturer will own a 51 percent stake in a second joint venture “to promote and develop new markets“ for the KC-390 military transport aircraft.
At the moment, the Brazilian government has full veto power at Embraer but would be forced to give up all control of the nation’s aircraft manufacturer to the American company.
The closing of the transaction will be subject to shareholder and regulatory approvals and is intended to be finalised by the end of 2019.
Nick Wenzel founded International Flight Network in 2016. He is the Social Media Manager and an Editor for IFN.news.