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The Boeing Aeronautics Group to Acquire a Majority Interest in the Embraer Aircraft Builder's Commercial Aircraft Division in Brazil, The Value of the Transaction being Estimated at $ 4.75 Billion According to the BBC Report and Reuters.
As a result of Boeing's operation, it dramatically increases its market share on small passenger aircraft. Boeing has long been trying to acquire Embraer, but the need for an agreement has become more pressing since its European rival, Airbus SE, took a majority stake in CSeries Aircraft Limited, a division of the Canadian company Bombardier which manufactures and sells C-Series, significantly increase its market share.
The transaction, which should be finalized by the end of 2019, will restore parity between Boeing and Airbus in the world.
According to the agreement, the Embraer commercial aircraft division will be placed in a new joint venture, in which Boeing will hold an 80% stake of $ 3.8 billion.
Military Technician
Embraer is a Brazilian industrial conglomerate and a major military technician.
In October, Airbus agreed to acquire a majority stake in CSeries Aircraft Limited Partnership, the division of Canadian group Bombardier that produces and sells C-Series aircraft. The transaction does not generate costs for Airbus, which earns 50.01% of CSeries Aircraft Limited.
Following the resumption of CSeries, Airbus will be able to offer both CSeries aircraft and its own aircraft to airlines, improve its efficiency and significantly reduce the prices of components, according to analysts.
Bombardier will hold approximately 31% of CSeries, while Investissement Québec, the investment division of the Canadian province of Quebec, will hold a 19% interest.
The rapid completion of the agreement will allow Airbus to begin selling C-series aircraft alongside its own A320 family models at Farnborough, the world's largest aviation show, which debuts July 16th. C Series C competes with Boeing 737 and Airbus A320.
Airbus, Boeing and Bombardier have a significant presence in the Romanian market
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