Boeing, Embraer Unveil $4.75 Billion Joint Venture for Regional Jets

Boeing announced Thursday it will assume a controlling interest in Embraer’s commercial aircraft business under a new $4.75-billion joint venture.

The move creates a duopoly in the global passenger aircraft business following Airbus’ recent joint venture with Bombardier.

“By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies’ customers, employees and shareholders – and for Brazil and the United States,” said Boeing CEO Dennis Mullenberg.

Under the terms of the agreement, Boeing will take control of Embraer’s commercial aircraft and services business and with an 80% ownership stake. Embraer will continue to own 20% and will also maintain control of its defense and business jet units.

Embraer’s CEO, Paulo Cesar de Souza e Silva, termed the deal “the most important strategic partnership in the aerospace industry.”

The deal requires regulatory approval in Brazil, where concerns had been raised over possible U.S. influence in Brazilian military programs.

(Photo: Accura Media Group)