Log in to use our free company, program and sector update tracker feature.
 

Front page

Boeing-Embraer partnership receives shareholder approval

The proposed strategic partnership between Boeing and Embraer was approved by Embraer's shareholders during an Extraordinary General Shareholders' Meeting held at the company's headquarters in Brazil.

At the special meeting, 96.8% of all valid votes cast were in favor of the transaction, with participation of approximately 67% of all outstanding shares. Shareholders approved the proposal that will establish a joint venture made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80 percent ownership stake in the new company, and Embraer will hold the remaining 20 percent.

The transaction values 100 percent of Embraer's commercial aircraft operations at $5.26 billion, and contemplates a value of $4.2 billion for Boeing's 80 percent ownership stake in the joint venture.

Embraer shareholders also agreed to a joint venture to promote and develop new markets for the multi-mission medium airlift KC-390. Under the terms of this proposed partnership, Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent.

"This groundbreaking partnership will position both companies to deliver a stronger value proposition for our customers and other stakeholders and create more opportunities for our employees," said Paulo Cesar de Souza e Silva, President and CEO of Embraer. "Our agreement will create mutual benefits and boost the competitiveness of both Embraer and Boeing."

"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.

Embraer's defense and executive jet business and services operations associated with those products would remain as a standalone publically-traded company. 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.

"Our shareholders have recognized the benefits of partnering with Boeing in commercial aviation and the promotion of the multi-mission airlift KC-390, as well as understanding the opportunities that exist in the executive aviation and defense business," said Nelson Salgado, Embraer Executive Vice President of Finance and Investor Relations.

"People across Boeing and Embraer share a passion for innovation, a commitment to excellence, and a deep sense of pride in their products and their teams – these joint ventures will strengthen those attributes as we build an exciting future together," said Greg Smith, Boeing Chief Financial Officer and Executive Vice President of Enterprise Performance & Strategy.

Boeing and Embraer announced in December 2018 that they had approved the terms for the joint ventures and the Brazilian government gave its approval in January 2019. Shortly thereafter, Embraer's board of directors ratified its support for the deal and definitive transaction documents were signed. The closing of the transaction is now subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions, which Boeing and Embraer hope to achieve by the end of 2019.

Embraer will continue to operate the commercial aviation business and the KC-390 program independently until the closing of the transaction.

Press release issued by Embraer-Empresa Brasileira de Aeronautica S.A. on February 26, 2019

 

 Contact details from our directory:
Embraer-Empresa Brasileira de Aeronautica S.A. Airframer
Boeing Commercial Airplanes Airframer

 

 Related aircraft programs:
Embraer KC-390

Enhanced listings:


FGL Precision Ltd
FGL Precision manufactures fine quality components for the aerospace and defence markets where consistent performance is critical.

AMETEK PDS -Power and Data Systems
Global design and manufacturer of components and systems to the aerospace & defense industry for over 80 years.

TenCate Advanced Composites, part of Toray Group
TenCate Advanced Composites is a leading provider of thermoset and thermoplastic prepregs to the aerospace industry.

Interface Force Measurements Ltd
Accurate & reliable torque, force & pressure sensors, pressure mapping systems & calibration systems.

Alarin Aircraft Hinge, Inc.
A full-service manufacturer and supplier of high-quality engineered metal hinges for the worldwide aerospace industry.

See our advertising tariff.

 

X
Monthly page limit exceeded. Please buy a subscription.

© Airframer Limited, operated under licence by Stansted News Limited 2019. Terms & Conditions of reading. Privacy policy