US plane maker Boeing and Brazilian plane maker Embraer have announced a scheme to accelerate mutual growth in global aerospace markets, reports the American Journal of Transportation.
The agreement proposes a joint venture comprising the commerical aircraft and services business of Embraer that would align with Boeing's commercial development, production, marketing and lifecycle operations, said the joint statement.
Boeing will hold an 80 per cent with Embraer owning 20 per cent.
Said Boeing chairman, president and CEO Dennis Muilenburg: 'By forging this, we will be positioned to generate significant value.'
Said Embraer president and CEO: 'The combination is a virtuous cycle for the Brazilian aerospace, increasing sales, production, jobs, income, investments and exports.'
The transaction values 100 per cent of Embraer's commercial aircraft operations at US$4.75 billion, and contemplates a value of $3.8 billion for Boeing's 80 per cent ownership stake in the joint venture.
The agreement proposes a joint venture comprising the commerical aircraft and services business of Embraer that would align with Boeing's commercial development, production, marketing and lifecycle operations, said the joint statement.
Boeing will hold an 80 per cent with Embraer owning 20 per cent.
Said Boeing chairman, president and CEO Dennis Muilenburg: 'By forging this, we will be positioned to generate significant value.'
Said Embraer president and CEO: 'The combination is a virtuous cycle for the Brazilian aerospace, increasing sales, production, jobs, income, investments and exports.'
The transaction values 100 per cent of Embraer's commercial aircraft operations at US$4.75 billion, and contemplates a value of $3.8 billion for Boeing's 80 per cent ownership stake in the joint venture.