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Stakeholders approved deal to sell 80% of Brazil’s Embraer commercial jet division to Boeing

Stakeholders approved deal to sell 80% of Brazil’s Embraer commercial jet division to Boeing

The exchange esteems Embraer’s commercial aircraft operations at 5.26 billion USD and Boeing’s 80% offer at 4.2 billion USD.

– TFM Watch

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Stakeholders of Brazilian aircraft producer Embraer endorsed the pact to sell 80% of the its commercial jet division to Boeing, framing a partnership which will contend with Airbus in the market for planes with up to 150 seats.

The proposition goes with 96.8% votes for the exchange, while cooperation in the vote likened to 67% of all outstanding share. The exchange esteems Embraer’s commercial aircraft operations at 5.26 billion USD and Boeing’s 80% offer at 4.2 billion USD.

In this way, Boeing will completely control the new venture. The arrangement with Boeing concerns just the Embraer commercial aircraft division, based on which the joint venture will be created. Divisions for the making of business and military aircrafts in the contract to make a joint venture does not appear.

Embraer investors likewise consented to a joint dare to advance and grow new markets for the multi-mission medium KC-390 airlifter. Under the terms of that proposed partnership, Embraer will claim a 51 percent stake in the joint venture and Boeing the rest. Embraer’s defence and executive jet business and service operations related with those products would remain an independent, publicly traded company.

“This noteworthy association will position the two organizations to convey a more grounded offer for our clients and other stakeholders and make more create more opportunities for our employees. Our understanding will make common advantages and lift the intensity of both Embraer and Boeing”, said the President and CEO of Embraer, Paulo Cesar de Souza e Silva.

On Friday, a court in Brazil suspended discussions on the formation of a joint venture between the American aircraft manufacturing concern Boeing and a business aircraft improvement unit of the Brazilian organization Embraer. The conclusion was requested in the high court and the date for the gathering of investors was confirmed for February 26.

The Brazilian government has effectively confirmed the formation of a Boeing and Embraer partnership.

Source: Wings Herald

– TFM Watch

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