American aerospace company Boeing and Brazilian aircraft maker Embraer recently announced plans to form a joint venture (AP News). The joint company is valued at $4.75 billion, and Boeing will own 80% while Embraer will own 20% (AP News). Business experts expect the deal to make Boeing the market leader for smaller passenger jets, enhancing competition between Boeing and European rival Airbus (Reuters). Airbus took control of Canada’s Bombardier C-Series jet program, giving the company the advantage in the global aerospace market (BBC).
According to Boeing’s chief executive, the deal will “generate significant value for both companies’ customers, employees and shareholders – and for Brazil and the US” (BBC). Brazilian Workers Party Congressman Carlos Zarattini condemned the deal for giving Boeing too much control, calling it a “crime against the homeland” (Reuters 2). The Brazilian government, which can veto the deal, appears to support the venture, as an air-force official defended it in a congressional hearing (Reuters 2). A Boeing spokesperson said the deal will close by the end of 2019 pending approvals from the government, regulators and shareholders (BBC).
Tags: South America, United States, Brazil, Boeing, Embraer