Boeing and Embraer announced on Thursday that the Brazilian government approved the strategic partnership between the two aerospace companies. In December, both detailed plans to purchase 80 percent of Embraer’s commercial jetliner by Boeing and the creation of a second joint venture to produce and sell the KC-390 military transport jet.
“Embraer and Boeing have welcomed approval by the Government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets,” the two companies said in a statement shortly after approval by Brazilian new President Jair Bolsonaro.
However, in order for the partnership to be effective, it will still take several steps. The next one is to have the agreement ratified by the Board of Directors of Embraer, then it will be the time to prepare the definitive documents of the transaction. Finally, the partnership will be submitted to the shareholders and will require the approval of the regulatory agencies of Brazil and the United States.
For this reason, Boeing and Embraer believe that the agreement will be officially closed at the end of 2019.
If all goes as expected, Boeing will be able to offer its potential customers a more extensive line of commercial jets with models from 70 to more than 400 seats. Today Embraer produces the new line of E2 jets, improved versions of its E-Jet family that includes the E175-E2, E190-E2 and E195-E2 that compete with the A220, a jet created by rival Bombardier and today part of Airbus.