Brazilian antitrust body approves Boeing-Embraer agreement
The Brazilian manufacturer sold 80% of its commercial aircraft division to Boeing for 4,200 million dollars
The Administrative Council of Economic Defense (CADE in Spanish), known as the Brazilian antitrust body, approved the agreement whereby Brazilian aircraft manufacturer Embraer sold control of its commercial division to US-based Boeing for the creation of a new company.
According to the provisions of the shareholders of both companies, Embraer, one of the largest aircraft manufacturers in the world, sold 80% of its commercial aircraft division to Boeing for 4,200 million dollars, having the Control of the new society.
Both companies also agreed to create a joint venture company that will be responsible for the production and marketing of the KC-390 military freighter, in which Embraer will have 51% and Boeing 49%.
For its part, in a statement the CADE gave its approval to the project ensuring that “the expansion of the Boeing portfolio (with Embraer aircraft) should increase its ability to exert competitive pressure against the leader Airbus, a company that dominates this market”.
He also added that both agreements will be beneficial for Embraer “who will become a strategic partner of Boeing. In this way, the divisions that remain under the control of Embraer (executive aviation and defense) will have greater technological and commercial cooperation from Boeing.”
K.Villarroel
Source: bancaynegocios
