Following months of negotiations, Boeing and Embraer have signed an MOU to set up a joint venture (JV) comprising Embraer’s commercial aircraft and services business.
The non-binding agreement, announced July 5, sees Boeing take an 80% stake Embraer’s commercial operations, while Embraer will control the remaining 20%. Management of the new company will be based in Brazil and will be led by a president and CEO who will report to Boeing CEO Dennis Muilenburg.
Boeing will “have operational and management control of the new company,” it said.
The companies expect the transaction to close by the end of 2019 following all shareholder and regulatory approvals, including gaining support by the Brazilian government.