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The Brazilian regulator approved a deal between Boeing and Embraer. The strategic partnership between the American and Brazilian aircraft manufacturers implies creation of two joint ventures.
First, Boeing buys for $ 4.2 billion 80% of the Embraer sales and service division. The cost of the new enterprise, which should exclusively deal with the construction of civilian aircraft, is estimated at $ 5.26 billion. Secondly, the companies will create a joint venture to promote and launch Embraer KC-390 medium-range aircraft. The partners will share stakes in this joint venture almost in half: 51% Embraer and 49% Boeing.
The Governing Body for Economic Protection of Brazil decided that the collaboration of the two giants would not adversely affect market competition. On the contrary, expanding Boeing’s portfolio will push Airbus into a dominant position. However, the European regulator, which must also evaluate the prospects of the deal, may decide otherwise. He will announce this before April 30.
source: bloomberg.com
First, Boeing buys for $ 4.2 billion 80% of the Embraer sales and service division. The cost of the new enterprise, which should exclusively deal with the construction of civilian aircraft, is estimated at $ 5.26 billion. Secondly, the companies will create a joint venture to promote and launch Embraer KC-390 medium-range aircraft. The partners will share stakes in this joint venture almost in half: 51% Embraer and 49% Boeing.
The Governing Body for Economic Protection of Brazil decided that the collaboration of the two giants would not adversely affect market competition. On the contrary, expanding Boeing’s portfolio will push Airbus into a dominant position. However, the European regulator, which must also evaluate the prospects of the deal, may decide otherwise. He will announce this before April 30.
source: bloomberg.com
