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Boeing, Embraer announce partnership to boost global market share

Source: Xinhua| 2018-12-18 13:40:17|Editor: Chengcheng
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RIO DE JANEIRO, Dec. 17 (Xinhua) -- Brazilian aircraft manufacturer Embraer and its U.S. counterpart Boeing announced on Monday they approved the terms of a joint venture to boost their share of the global aerospace market.

According to the companies, the joint venture will deal with only Embraer's commercial aircraft and service operations, not its military aircraft division.

Boeing will hold an 80-percent stake in the joint venture valued at some 5.26 billion U.S. dollars, and Embraer will own the remaining 20 percent.

"We are confident that this partnership will deliver great value to Brazil and the Brazilian aerospace industry as a whole," Embraer CEO Paulo Cesar de Souza e Silva said.

"This alliance will strengthen both companies in the global market and is aligned with our long-term sustainable growth strategy," he added.

The deal still needs to be approved by regulation agencies and by the Brazilian government, which has veto power over such agreements involving Embraer.

Negotiations between the two companies began a year ago in response to the announced merger between two of their biggest competitors, Airbus and Canada's Bombardier.

Brazil's new government, due to take office in 2019, is unlikely to oppose the deal. Vice President-elect Hamilton Mourao said earlier on Monday that the joint venture was "essential" for Embraer to properly face competition.

Trade unions, however, voiced their disapproval over the deal, worrying whether jobs in Brazil will be preserved.

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