Embraer’s [ERJ] shareholders on Tuesday approved proposals for two joint ventures with Boeing [BA], one for aircraft and services operations for the Brazil-based company’s commercial aircraft and the other for its multi-mission KC-390 medium airlift aircraft, the companies said on Tuesday.
The shareholder approval moves the joint ventures one step closer to completion, with the companies still expecting closures by the end of 2019. Regulatory approvals are still needed.
Boeing will own an 80 percent stake in the commercial joint venture and Embraer will have 51 percent ownership of the KC-390 joint venture. The companies said the commercial joint venture is valued at $5.3 billion, with Boeing’s stake worth $4.2 billion.
The joint venture for the KC-390 will be focused on development, manufacture and sales for new markets and applications.
At a special shareholder meeting in Brazil, nearly 97 percent of the votes cast were in favor the joint ventures.
“Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies,” Dennis Muilenburg, Boeing’s chairman, president and CEO, said in a statement. “This strategic global partnership will build on Boeing’s and Embraer’s long history of collaboration, benefit our customers and accelerate our future growth.”
Embraer’s defense and executive jet businesses and related services will continue to be operated by Embraer as a separate publicly traded company.