CHICAGO - Boeing and Embraer have announced that they continue to work together to establish their strategic partnership. Since receiving approval for the partnership from Embraer shareholders in February this year, the companies have undertaken planning for the creation of a joint venture made up of the commercial aircraft and services operations of Embraer. Boeing will own 80 percent of the new company, to be named Boeing Brasil – Commercial. Embraer will hold the remaining 20 percent.
The transaction remains subject to regulatory approval; the two companies are engaged with authorities in relevant jurisdictions and have obtained a number of regulatory approvals. Following a detailed assessment by the U.S. Federal Trade Commission, the parties' strategic partnership has received clearance to close in the United States. The European Commission recently indicated it will open a Phase II assessment in its review of the transaction. Based on this development, however, the companies now expect the transaction to close in early 2020.
