Boeing has agreed to purchase 80% of Embraer's commercial
The transaction, which values Boeing's share at $3.8
billion, would be undertaken through the formation of a joint venture.
The move would give Boeing a leading position in the
regional jet market of 70- to 90-seat aircraft, a segment in which it does not
currently compete. It also would boost Boeing's position to compete in the
small mainline jet market with the newly formed partnership between Airbus and
Bombardier's C-Series of 100- to 150-seat aircraft.
"Boeing and the joint venture would be positioned to
offer a comprehensive, highly complementary commercial airplane portfolio that
ranges from 70 seats to more than 450 seats and freighters, offering
best-in-class products and services to better serve the global customer base,"
the companies said.
Once final, the joint venture is to be based in Brazil, the
home of Embraer. Boeing would have operational and management control of the
entity and the management team would report directly to Boeing CEO Dennis
The acquisition is subject to approval of the Brazilian
Thursday's announcement follows confirmation by Boeing and
Embraer in December that they were engaged in discussions about a "potential
Airbus formally took controlling interest of Bombardier's C-Series
program on July 1, finalizing an agreement that shook up the aerospace industry
when the companies unveiled it last October.
coupled with the merger of Embraer's commercial aircraft division with Boeing,
would effectively leave a duopoly in the commercial passenger jet marketplace.