Brazil Approves Boeing's $4.2 Billion Acquisition of Embraer
On Thursday, Brazil's government approved Boeing's purchase of a majority stake in Brazilian-based airline manufacturer Embraer — marking a major milestone toward completing the deal to merge the two companies together.
The deal, valued at $4.2 billion, will give Boeing an 80% ownership stake in Embraer and therefore control of the company's operations.
In December, a Brazilian court blocked the deal from moving forward because of the upcoming presidential election — stating that because of the government's veto powers to stop deals like this, the court wanted the new government to make the decision, which could have decades of impact on the country.
Newly elected Brazilian president Jair Bolsonaro took to Twitter to say that Brazil's sovereignty and national interest was not threatened by the deal.
In a joint statement, Boeing and Embraer said that after shareholder and other regulatory approvals, they expect the deal to close by the end of 2019.
Embraer produces smaller regional passenger jets and is the third biggest aircraft manufacturer in the world after Boeing and Airbus. Best known for its ERJ and E-Jet series of aircraft, the company recently introduced the E-Jet E2 family, with the first E190-E2 being delivered to Widerøe in 2018.
After Airbus acquired Bombardier's C300 program, and renaming it as the Airbus A220, Boeing pursued the acquisition of Embraer since it made the only real competitor jet to the A220. Embraer also makes military and executive aircraft.