Boeing Finalizes Deal With Embraer for $4.2 Billion
Boeing has finalized a deal to buy a majority stake in Brazilian plane maker Embraer's commercial operations for $4.2 billion, the companies announced on Monday.
Embraer manufactures workhorse regional jets like the E-175 and E-190. According to the deal, Chicago-based Boeing will buy an 80% stake of Embraer's commercial aircraft and services and take over operational and management control of those sectors. Embraer will keep the remaining 20% stake, as well as consent rights for some decisions, which would include moving any of the operations from Brazil.
Plans for the joint venture were originally announced in July, along with some of the terms of the agreement. Monday was the first time the terms -- including the price tag -- had been finalized by both companies. Boeing's payment of $4.2 billion for an 80% stake values Embraer's total commercial division at $5.26 billion. That's 11% more expensive than the total division's valuation when the plans were first announced, which was estimated at $4.75 billion.
Embraer's main competitor, Canadian plane builder Bombardier, struck a similar deal earlier this year with Airbus, selling off its C-Series program to the Boeing rival.
The deal still needs approval from the Brazilian government, though the country's new president Jair Bolsonaro has reportedly said he would be "OK" with a joint venture between the two aircraft manufacturers, Reuters reported back in October. After getting the official go-ahead from the government, the agreement will need approval from shareholders and other regulators.
Assuming the approvals come in a timely manner, Boeing said in its announcement, the deal is expected to close by the end of 2019.
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The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit.Pros
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- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- Earn 150,000 bonus miles once you spend $30,000 in the first 3 months from account opening
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
- Earn 10X miles on hotels and rental cars and 5X miles on flights and vacation rentals booked through Capital One Business Travel
- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
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- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month