Brazil-based Embraer [B3: EMBR3) (NYSE: ERJ] and Boeing [NYSE: BA] have announced they have approved terms of a strategic partnership that would accelerate growth in global aerospace markets, the company said.
The approved terms define the joint venture comprising the commercial aircraft and services operations of Embraer, in which Boeing will hold an 80 percent ownership stake and Embraer will hold the remaining 20 percent.
The transaction remains subject to approval by the Government of Brazil, after which Embraer and Boeing intend to execute definitive transaction documents. The closing of the transaction will then be subject to shareholder and regulatory approvals and customary closing conditions.
Under the terms of the proposed partnership, Boeing will acquire an 80 percent ownership stake in the joint venture for USD 4.2 billion.