Friday, July 6, 2018

Boeing, Embraer to join forces

Boeing has agreed to take control of Embraer's jetliner business, a deal that will add a smaller single-aisle aircraft to the Boeing portfolio. The agreement between Chicago-based Boeing and Brazil's Embraer comes less than a week after Europe's Airbus and Canada's Bombardier closed on a partnership that gives Airbus a 50.1 percent controlling stake in the CSeries jetliner - and a second CSeries assembly line in Mobile, Ala. In the Boeing-Embraer deal, Boeing will hold an 80 percent ownership stake in a joint venture valued at $4.75 billion. Financial and operational details still need to be worked out, and shareholders and the government of Brazil need to approve. The whole process could take until the end of 2019. Boeing and Airbus both face increasing competition from aircraft manufacturers in China and Russia. (Sources: multiple, including Avionics, Wall Street Journal, ABCNews, 07/05/18) Previous