Boeing Co is to take control of the commercial business of Brazil’s Embraer SA, the companies announced on Thursday, better positioning the US aerospace giant to compete with rival Airbus SE in the market for smaller jets.
The announcement follows months of talks to allay concerns of the Brazilian government, which had veto power over the transaction and initially resisted ceding control to the US company.
Under the terms of the deal, Boeing is to hold an 80 percent stake in the commercial part of Embraer, which is valued at US$4.75 billion, the companies said.
The deal would allow Boeing to offer planes with capacity up to 150 seats, a market that it does not currently compete in.
It follows a similar strategic partnership by European archrival Airbus with Canada’s Bombardier Inc in October last year.
The US firm is to have operational and management control over the new venture, which is to be led by a Brazil-based head who would report to Boeing chief executive Dennis Muilenburg, the statement said.
The companies are creating another joint venture to promote their defense products and services, especially Embraer’s KC 390, a military transport aircraft.
Embraer CEO and president Paulo Cesar de Souza e Silva said that the tie-up would create a “virtuous cycle” for Brazilian aerospace, increasing sales potential and production, and consequently adding value for shareholders and employees.
The companies said that financial and operational details were still being finalized, a process which would continue over several months, after which the deal would be subject to shareholder and regulatory approval, including by the Brazilian government.
Brazilian officials initially opposed giving up control of Embraer to a foreign entity. However, the parties appear to have gotten around this concern by limiting Boeing’s control to the civilian part of the business.
Embraer, the third-largest aircraft manufacturer in the world, was founded as a state group in 1969 before being privatized in 1994, although the Brazilian government retained the right to make strategic decisions for the company.
Boeing executives have for months expressed interest in the deal, while making clear that they did not view it as a must-do transaction.
Muilenburg told a financial conference in late May that the Brazilian company’s assets included strong engineering talent and new opportunities in the airplane services business.
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
UNCERTAINTIES: The world’s biggest chip packager and tester is closely monitoring the US’ tariff policy before making any capacity adjustments, a company official said ASE Technology Holding Inc (日月光投控), the world’s biggest chip packager and tester, yesterday said it is cautiously evaluating new advanced packaging capacity expansion in the US in response to customers’ requests amid uncertainties about the US’ tariff policy. Compared with its semiconductor peers, ASE has been relatively prudent about building new capacity in the US. However, the company is adjusting its global manufacturing footprint expansion after US President Donald Trump announced “reciprocal” tariffs in April, and new import duties targeting semiconductors and other items that are vital to national security. ASE subsidiary Siliconware Precision Industries Co (SPIL, 矽品精密) is participating in Nvidia
RSS