ZCZC
BCN-07
BRAZIL-AEROSPACE-EMBRAER-BOEING-SALE
Embraer signs agreement to sell commercial division to Boeing
BRASILIA, Jan 25, 2019 (BSS/AFP) – Brazilian aircraft manufacturer Embraer
on Thursday signed an agreement for the sale of its commercial divison to
Boeing — and set the date for a shareholders meeting to approve the tie-up
on February 26.
Despite initital reservations, Brazil’s President Jair Bolsonaro already
gave the deal — which will create a joint entity valued at $5.2 billion —
his approval earlier this month.
Embraer was privatized in 1994, but Brazil’s government 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.
Embraer is the third-biggest plane-maker in the world, making aircraft in
the civilian and military markets. The latter are exempt from the Boeing tie-
up, which was first announced in July.
Under the deal with Boeing, the US company will take 80 percent control of
Embraer’s civilian business, putting it in a position to offer commercial
planes with up to 150 seats.
BSS/AFP/HR/1030