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According to the memorandum of understanding signed on Thursday, the American manufacturer and its Brazilian competitor will create a joint venture in which Embraer's commercial and civil activities will be 80% controlled by the American aerospace giant.
The management of this new joint venture will be from Brazil, say the two aircraft manufacturers in a statement.
This acquisition of 80% of Embraer activities brings to 4.75 billion dollars the valuation of the civil component of the Brazilian company however, it retains control of its military activities, at least for the time being.
The two companies have indeed announced the possibility of creating another joint venture with a military vocation this time "to promote and develop new markets and new applications for defense products and services. "
A response to Airbus and Bombardier
Just like the giant e European Airbus by acquiring the Bombardier C Series in October 2017, Boeing, which specializes in large aircraft, intends to expand its market to the small aircraft segment in order to offer its customers a range of aircraft including Capacities will range from 70 to 450 seats.
By this partnership agreement, which is to some extent the response of Boieng to the takeover of the C Series by Airbus, the Brazilian manufacturer will benefit, as does Bombardier with Airbus , Boeing's extensive development, production, marketing and after-sales capabilities to sell its aircraft worldwide.
"By forming this strategic partnership, we will have an ideal position to deliver value customers, employees and shareholders of both companies, as well as in Brazil and the United States, "said Boeing CEO Dennis Muilenburg in a
The merger of our activities with Boeing should create a virtuous cycle for the Brazilian aerospace industry by increasing its sales potential and production.
This announcement changes nothing, says Bombardier
In a statement released Thursday afternoon, Bombardier believes that it is clearly a reaction to its partnership with Airbus.
Boeing and Embraer finalize or not their partnership, the C Series aircraft are simply the best aircraft in their segment.
In Interview with RDI Economy Transportation Analyst Daniel Bordeleau points out that this partnership will enable Boeing to recruit Brazilian engineers in Sao Paulo at a lower cost, at a time when the American company needs to increase its workforce.
The tran This action, to be approved by the Government of Brazil, could be concluded next year hopefully.
"Subject to obtaining timely approvals, the transaction should be concluded by the end of of the year 2019, 12 to 18 months after the signing of the final agreements, "reads the statement issued by the two manufacturers Thursday.
Regarded as the third largest aircraft manufacturer in the world, Embraer employs 16,000 people and generates a turnover of $ 6 billion a year
The Brazilian manufacturer, which was privatized in 1994, is considered one of Brazil's industrial jewels.
Founded in 1916 by William Boeing in Seattle, Boeing is the largest aerospace company in the world with 140,000 employees and a presence in 65 countries. It manufactures military and civil aircraft and all kinds of spacecraft.
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