Embraer-Boeing JV Receives Shareholder Approval

Embraer shareholders have approved the sale of a majority stake in its commercial planemaking division to Boeing.

The acquisition of the 80 percent stake, costing Boeing USD$4.2 billion, was approved by 96.8 percent of voters at a shareholders' meeting in São Paulo.

The vote, by owners of 67 percent of outstanding shares, approved the joint venture between Boeing and Embraer for the Brazilian company's commercial aircraft and services operations. Boeing will own 80 percent of the JV, Embraer the remaining 20 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,” Embraer CEO Paulo Cesar de Souza e Silva said. “Our agreement will create mutual benefits and boost the competitiveness of both Embraer and Boeing.”

The meeting also approved a joint venture to further develop Embraer's KC-390 medium airlifter. Embraer will retain control of the project with a 51 percent stake, with Boeing taking a 49 percent holding.

“Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies,” Boeing chief executive Dennis Muilenburg said. “This strategic global partnership will build on Boeing’s and Embraer’s long history of collaboration.”

Boeing and Embraer announced the joint ventures in December 2018, with the Brazilian government approving the deal in January this year.

The JVs are now subject to regulatory approval and other closing conditions. The two companies hope to achieve these by the end of the year.