Brazil’s government on Thursday approved joint ventures between Boeing [BA] and Embraer [ERJ], the country’s aerospace and defense company, a strategic partnership that will give the U.S. aerospace giant a play in smaller commercial aircraft and a multi-mission military aircraft.

Embraer’s KC-390 multimission medium airlifter. Photo: Embraer

Terms of the strategic partnership were agreed to between the two companies in December. Under the commercial joint venture, Boeing will own an 80 percent stake and Embraer the remainder. Under a separate joint venture around Embraer’s KC-390 multi-mission medium airlift and tanker aircraft, the Brazilian company will hold a 51 percent stake and Boeing the rest.

Boeing said that Embraer’s board of directors still needs to ratify its prior approvals of the partnership before the companies can execute definitive transaction documents. Shareholders and regulators must still approve the transaction, which is expected to close by the end of 2019.

Under the KC-390 joint venture the companies will develop new markets for the aircraft.