CHICAGO and SÃO PAULO, Oct. 3,
2019 /PRNewswire/ -- Boeing [NYSE: BA] and Embraer [B3:
EMBR3, NYSE: ERJ] continue to work closely together to establish
their strategic partnership, positioning both companies to deliver
greater value to airline customers and the flying public, and to
accelerate growth in global aerospace markets.
Since receiving approval for the partnership from Embraer
shareholders in February this year, the companies have undertaken
diligent planning for the creation of a joint venture made up of
the commercial aircraft and services operations of Embraer. Boeing
will own 80 percent of the new company, to be named Boeing Brasil –
Commercial. Embraer will hold the remaining 20 percent.
The transaction remains subject to regulatory approval; the two
companies are actively engaged with authorities in relevant
jurisdictions and have obtained a number of regulatory approvals.
Following a detailed assessment by the U.S. Federal Trade
Commission, the parties' strategic partnership has received
clearance to close in the United
States. The European Commission recently indicated it will
open a Phase II assessment in its review of the transaction, and
Boeing and Embraer look forward to assisting with that review.
Based on this development, however, the companies now expect the
transaction to close in early 2020.
Boeing and Embraer are also preparing to launch a joint venture
to promote and develop markets for the multi-mission medium airlift
KC-390. Under the terms of the proposed partnership, Embraer will
own a 51 percent stake in the joint venture and Boeing will own the
remaining 49 percent. Two KC-390 milestones were recently achieved
by Embraer: the first KC-390 was delivered to the Brazilian Air
Force, and the first international purchase was announced by
Portugal.
The comprehensive Boeing-Embraer strategic partnership, embodied
through these two joint ventures, will position the companies to
compete in the global marketplace, to deliver greater value to
customers, and to boost the Brazilian aerospace industry as a
whole.
Forward-Looking Information Is Subject to Risk and
Uncertainty
Certain statements in this release may be "forward-looking"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding the proposed terms of the
transaction, the ability of the parties to satisfy the conditions
to executing or closing the transaction and the timing thereof, and
the benefits and synergies of the proposed transaction, as well as
any other statement that does not directly relate to any historical
or current fact. Forward-looking statements are based on current
assumptions about future events that may not prove to be accurate.
These statements are not guarantees and are subject to risks,
uncertainties and changes in circumstances that are difficult to
predict. Many factors could cause actual results to differ
materially from these forward-looking statements. As a result,
these statements speak only as of the date they are made and
neither party undertakes an obligation to update or revise any
forward-looking statement, except as required by law. Specific
factors that could cause actual results to differ materially from
these forward-looking statements include the effect of global
economic conditions, the ability of the parties to reach final
agreement on a transaction, consummate such a transaction and
realize anticipated synergies, and other important factors
disclosed previously and from time to time in the filings of The
Boeing Company and/or Embraer with the Securities and Exchange
Commission.
Contact
Chaz Bickers
Boeing Communications
charles.n.bickers@boeing.com
+1 312-544-2002
Valtecio Alencar
Global Corporate Communications
Embraer
Valtecio.alencar@embraer.com.br
+55 11-3040-6891
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SOURCE Boeing