TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Embraer signs agreement to sell commercial division to Boeing
Despite initital reservations, Brazil's President Jair Bolsonaro already gave the deal -- which will create a joint entity valued at $5.2 billion -- his approval earlier this month.
Change Size
Embraer and Boeing jetliners stand on the Tarmac of Le Bourget on June 18, 2017 on the eve of the opening of the International Paris Air Show.
ERIC PIERMONT / AFP
(AFP/Eric Piermont)
B
razilian aircraft manufacturer Embraer on Thursday signed an agreement for the sale of its commercial divison to Boeing -- and set the date for a shareholders meeting to approve the tie-up on February 26.
Despite initital reservations, Brazil's President Jair Bolsonaro already gave the deal -- which will create a joint entity valued at $5.2 billion -- his approval earlier this month.
Embraer was privatized in 1994, but Brazil's government retained a "golden share" that gave it veto power over strategic decisions.
On top of getting shareholders on board, the agreement must also be approved by regulators, among other things. If all progresses without delay, the companies expect to conclude negotiations by the end of 2019.
Embraer is the third-biggest plane-maker in the world, making aircraft in the civilian and military markets. The latter are exempt from the Boeing tie-up, which was first announced in July.
Under the deal with Boeing, the US company will take 80 percent control of Embraer's civilian business, putting it in a position to offer commercial planes with up to 150 seats.
