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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Swedish defence firm Saab AB, proposes to make 96 Gripen jets in India

Saab proposes to make 96 Gripen jets in India to win Air Force deal

Saab is expected to face competition from rivals such as Boeing, Lockheed Martin, and Dassault Aviation to supply 110 fighter jets to the Indian Air Force

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The E version of the Swedish JAS 39 Gripen multirole fighter was rolled out at the SAAB in Linkoping, Sweden, May 18, 2016

BENGALURU (Reuters) – Swedish defence firm Saab AB, which is seeking to sell its Gripen fighter jets to the Indian Air Force, said on Tuesday it could offer to make most of them in a production facility likely to be set up in one of the southern cities.

Saab is expected to face competition from rivals such as Boeing Co, Lockheed Martin Corp and Dassault Aviation SA to supply about 110 fighter jets to the Air Force, in what could be a deal worth more than $15 billion.

As part of Prime Minister Narendra Modi’s ‘Make in India’ push, Saab is considering locally manufacturing 96 of the 114 jets it wants to sell to the country, the Stockholm-based company officials told reporters on the sidelines of a conference ahead of “Aero India 2019” in Bengaluru.

Saab has tied up with resources conglomerate Adani Group to sell the single-engine planes to fulfill the condition of bidders having an Indian partner to be considered for the order.

Any manufacturing facility in the country could also become an export hub, Saab’s Indian unit Chairman and Managing Director Ola Rignell told Reuters at the conference.

The cities of Bengaluru and Hyderabad would be the “natural choice” for any plant.

Reporting by Tanvi Mehta in Bengaluru

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