Boeing-Embraer partnership receives shareholder approval
The proposed strategic partnership between Boeing and Embraer has been approved by Embraer’s shareholders during an Extraordinary General Shareholders’ Meeting held at the company’s headquarters in Brazil.
At the special meeting, 96.8% of all valid votes cast were in favour of the transaction, with participation of approximately 67% of all outstanding shares. Shareholders approved the proposal that will establish a joint venture made up of the commercial aircraft and services operations of Embraer. Boeing will hold an 80% ownership stake in the new company, and Embraer will hold the remaining 20%.
The transaction values 100% of Embraer’s commercial aircraft operations at US$5.26 billion, and contemplates a value of US$4.2 billion for Boeing’s 80% ownership stake in the joint venture.
Embraer’s defence and executive jet business, and services operations associated with those products, would remain as a standalone publicly-traded company. A series of support agreements focused on supply chain, engineering and facilities would ensure mutual benefits and enhanced competitiveness between Boeing, the joint venture and Embraer.
