BOEING-EMBRAER STRATEGIC PARTNERSHIP

The two global aerospace majors Boeing of the US and Embraer of Brazil have signed a Memorandum of Understanding to establish a strategic partnership to form a joint venture consisting of the commercial aircraft and services business of Embraer that would strategically align with Boeing’s commercial development, production, marketing and lifecycle services operations. Under the terms of the agreement, Boeing will hold 80 per cent stake in the joint venture and Embraer the remaining 20 per cent. The agreement will allow Boeing to fill a crucial gap in its portfolio and allow Embraer to leverage Boeing’s worldwide marketing and manufacturing network. Finalisation of the financial and operational details of the partnership and negotiation of definitive transaction agreements are expected to continue in the coming months. Upon execution of these agreements, the transaction would then be subject to shareholder and regulatory approvals, including from the Government of Brazil.