Embraer shareholders have voted overwhelmingly in support of the proposed strategic partnership between the Brazilian aircraft manufacturer and Boeing. At an extraordinary general shareholders meeting, held at Embraer’s headquarters in Brazil, they voted 96.8% in favour of the proposal that will establish a joint venture made up of the commercial aircraft and services operations of Embraer.
Boeing will have an 80% ownership stake in the new company, with Embraer holding the remaining 20%. The transaction values the Brazilian company’s commercial aircraft operations at $5.26bn. The shareholders also agreed to a joint venture to promote and develop new markets for the multi-mission medium airlifter KC-390.
Paulo Cesar de Souza e Silva, president and CEO of Embraer, said: “This ground-breaking partnership will position both companies to deliver a stronger value proposition for our customers, other stakeholders and create more opportunities for our employees.
Dennis Muilenburg, Boeing chairman, president and chief executive officer, added: “Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies. The strategic global partnership will build on our long history of collaboration, benefit our customers and accelerate our future growth.”
Embraer’s defence, executive jet and service support businesses associated with those products will remain as a standalone publicly traded company. A series of support agreements focused on supply chain, engineering and facilities will ensure mutual benefits as well as enhanced competitiveness between Boeing, the joint venture and Embraer.
Both companies announced in December that they had ratified the terms for the joint ventures and the Brazilian government gave its approval in January. The closing of the transaction is now subject to obtaining regulatory approvals which Boeing and Embraer hope to achieve by the end of 2019. Embraer will continue to operate the commercial aviation business and the KC-390 programme independently until the transaction is completed.