Brazil Approves Boeing’s $4.2 Billion Acquisition of Embraer

Jan 11, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

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.

Featured image by ERIC PIERMONT/AFP/Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.