Embraer signs agreement to sell commercial division to Boeing
Embraer Thursday signed an agreement for the sale of its commercial division to Boeing — and set the date for a shareholders meeting to approve the tie-up at Feb 26. Despite initial reservations, Brazil’s president Jair Bolsonaro already gave the deal — which will create a joint entity valued at US$5.2b — his approval earlier this month. Embraer was privatised in 1994, but Brazil’s govt retained a “golden share” that gave it veto power over strategic decisions. On top of getting shareholders on board, the agreement must also be approved by regulators, among other things. If all progresses without delay, the companies expect to conclude negotiations by the end of 2019. Boeing would take 80% control of Embraer’s civilian business, putting it in a position to offer commercial planes with up to 150 seats. <br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2019-01-28/general/embraer-signs-agreement-to-sell-commercial-division-to-boeing
https://portal.staralliance.com/imagelibrary/logo.png
Embraer signs agreement to sell commercial division to Boeing
Embraer Thursday signed an agreement for the sale of its commercial division to Boeing — and set the date for a shareholders meeting to approve the tie-up at Feb 26. Despite initial reservations, Brazil’s president Jair Bolsonaro already gave the deal — which will create a joint entity valued at US$5.2b — his approval earlier this month. Embraer was privatised in 1994, but Brazil’s govt retained a “golden share” that gave it veto power over strategic decisions. On top of getting shareholders on board, the agreement must also be approved by regulators, among other things. If all progresses without delay, the companies expect to conclude negotiations by the end of 2019. Boeing would take 80% control of Embraer’s civilian business, putting it in a position to offer commercial planes with up to 150 seats. <br/>
