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Boeing and Embraer set terms for joint ventures

Boeing and Embraer jets
The Boeing-Embraer deal would add regional jets such as Embraer’s E190-E2 to a lineup that also includes Boeing’s 737 MAX 7 and larger jets. (Embraer Illustration)

Five months after announcing a tentative deal, the Boeing Co. and Brazil’s Embraer aerospace company say they’ve approved the terms for a joint venture that would take in Embraer’s commercial aircraft and services operations — plus another joint venture to promote and develop new markets for Embraer’s KC-390 military transport plane.

Boeing would acquire an 80 percent ownership stake in the commercial joint venture for $4.2 billion, the companies said. That amount is 10.5 percent higher than the figures cited for the tentative agreement announced in July: Back then, Boeing said it would take an 80 percent share of a joint venture valued at $4.75 billion, which would have worked out to a value of $3.8 billion for Boeing’s share.

The CEOs of both companies hailed the approval of the terms today in a news release.

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By Alan Boyle

Mastermind of Cosmic Log, contributing editor at GeekWire, author of "The Case for Pluto: How a Little Planet Made a Big Difference," president of the Council for the Advancement of Science Writing. Check out "About Alan Boyle" for more fun facts.

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