Boeing and Brazil's Embraer have jointly announced the signing of a Memorandum of Understanding (MoU) for the formation of a strategic aerospace partnership. The proposed joint venture will see Embraer's commercial aircraft and services business align, strategically, with Boeing's commercial development, production, marketing and lifecycle services operations.
The joint venture will see Boeing hold an 80 percent stake, with Embraer holding the remaining 20 percent. Boeing's stake in the venture is valued at US$3.8 billion based on the US$4.75 billion established as the full value of Embraer's commercial operations.
Dennis Muilenburg, Boeing's Chairman, President and Chief Executive Officer commented: “By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies' customers, employees and shareholders – and for Brazil and the United States. This important partnership clearly aligns with Boeing's long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans.”
The joint venture should be well positioned to offer a comprehensive commercial airplane portfolio with jets having from 70 to over 450 seats.
In addition, a further joint venture will be established between the two companies in an attempt to develop new markets and applications for defense products, including the KC-390 multi-mission jet.
Financial and operational details will be finalized over the next few months, and subject to this and regulatory approval, plus approval obtained from the Brazilian Government, will see the transaction closed by the end of 2019.
