It is about creating a joint venture, which includes the production of commercial aircraft and Embraer services, in which Boeing will buy a share of 80% for $ 4.2 billion, and Embraer will own the remaining 20%.
Both companies "welcomed" the approval in a joint declaration, stating: "The strategic partnership between Embraer and Boeing will enable both companies to accelerate growth in global aerospace markets".
However, in order for the partnership to be effective, it will still take several steps.More news: Cadillac to lead GM's EV strategy
While Embraer, the third largest manufacturer in the world behind Boeing and Europeans Airbus, was privatised in 1994, the Brazilian government retained a veto power of its strategic decisions.
"Once Embraer's Board of Directors ratifies its prior approval, the two companies will then execute definitive transaction documents, " Boeing said. Embraer would keep consent rights for some decisions, such as the transfer of operations from Brazil.
In a joint statement, both companies said their deal's conclusion now will be subject to shareholder and regulatory approvals.More news: HTC’s Prototype Vive Focus Controllers Look Strangely Familiar
"Assuming the approvals are received in a timely manner, the transaction is meant to close by the end of 2019".
Boeing said last month the partnership was expected to be neutral to its earnings per share in 2020 and accretive thereafter. Boeing would have operational and management control of the new company, which would report directly to Boeing CEO Dennis Muilenburg.
A separate joint venture, 51 percent owned by Embraer, would promote and develop new markets for the Brazilian company's KC-390 military transport plane. One clause that would allow Boeing to take Embraer's stake in 10 years for an extra billion was the center of dispute within the Brazilian government.More news: Teen charged after removal from plane at Auckland Airport for 'threatening comment'
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