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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.

Featured image by ERIC PIERMONT/AFP/Getty Images.

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