Boeing-Embraer Strategic Partnership To Form Boeing Brasil-Commercial Delayed Until Early 2020
Boeing recently announced that a strategic partnership it had planned to enter with Brazilian aircraft manufacturer Embraer by year’s end has been delayed to at least early 2020. Boeing says the two companies will continue working to form the partnership, which is expected to result in a joint venture named Boeing Brasil-Commercial.
Waiting On The EU
The joint venture, which Embraer’s shareholders approved in February, would see Boeing owning an 80% stake in the new company at a cost reportedly ranging from $4.2 billion to more than $4.5 billion. Embraer would hold a 20% stake. Boeing says while the U.S. Federal Trade Commission has approved the proposed partnership, the European Commission has indicated it will launch a Phase II assessment in its review, thus the delay to 2020.
The companies are also prepping a second joint venture to promote and develop markets for Embraer’s KC-90, a multi-mission medium twin-engine jet. That joint venture would see Embraer owning a 51% stake and Boeing a 49% interest. Overall, Boeing says the comprehensive “strategic partnership, embodied through these two joint ventures, will position the companies to compete in the global marketplace, to deliver greater value to customers, and to boost the Brazilian aerospace industry as a whole.”
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Source: Boeing
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