Boeing Takes Over Aviation Company Embraer’s Commercial Arm in Joint Venture

(From Reuters)

Boeing Co (BA.N) will take over the $4.75 billion commercial aircraft arm of Brazilian planemaker Embraer SA (EMBR3.SA) as part of a new company to be controlled by the U.S. firm, the companies said on Thursday.

The new company, encompassing Embraer’s commercial aircraft and services businesses, should make Boeing the market leader in the smaller passenger jet market, creating stiffer competition for the CSeries aircraft program designed by Canada’s Bombardier Inc (BBDb.TO) and backed by European rival Airbus SE (AIR.PA)..

The deal values Embraer’s commercial aircraft operations at $4.75 billion, and Boeing’s 80 percent ownership stake in the joint venture at $3.8 billion, the companies said.

Under the terms of the deal, Boeing will hold an 80 percent stake in the joint venture and Embraer the remaining 20 percent.

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