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Joe Breitfeller

Boeing and Embraer Celebrate Brazilian Regulatory Approval for Strategic Partnership

Boeing announced Monday that their strategic partnership with Embraer has received “unconditional approval” by the Administrative Council for Economic Defense (CADE)’s General-Superintendence (SG) in Brazil.


Boeing's Corporate Headquarters, Chicago - Courtesy Boeing

Yesterday, Boeing announced that Brazil’s Administrative Council for Economic Defense (Cade)’s General-Superintendence (SG) has unconditionally approved their strategic partnership with regional aircraft manufacturer Embraer. The partnership has now received regulatory clearance in every jurisdiction except for the European Commission. In Monday’s announcement, Boeing’s President of Embraer Partnership & Group Operations, Marc Allen said,


“This latest clearance is yet another endorsement of our partnership, which will bring greater competition to the regional jet marketplace, better value for our customers and opportunities for our employees.”


Also commenting on Monday’s positive development, Embraer’s President and CEO, Francisco Gomes Neto added,


Brazil’s approval of the deal is a clear demonstration of the pro-competitive nature of our partnership. It will not only benefit our customers, but also allow the growth of Embraer and the Brazilian aeronautical industry as a whole.”


To date, the strategic partnership has cleared regulatory hurdles in the U.S., Brazil, China, Japan, South Africa, Montenegro, Colombia and Kenya. Discussions with the European Commission (EC) have been ongoing since 2018, with Boeing and Embraer continuously engaged in the process. Commenting on the ongoing discussions with the EC, Boeing’s Mr. Allen said,


“We have been productively engaged with the Commission to demonstrate the pro-competitive nature of our planned partnership, and we look forward to a positive outcome. Given the positive endorsement we’ve seen from customers across Europe and the unconditional clearance we’ve received from every other regulator who has considered the transaction, we look forward to securing final approval for the transaction as soon as possible.”


The Boeing-Embraer partnership will consist of two joint ventures, the first of which will be called “Boeing-Brasil – Commercial.” Boeing will hold an 80% stake in the commercial aircraft entity, which also includes services operations, while Embraer will retain a 20% stake. The second joint venture is designed to promote and develop markets for Embraer’s multi-mission medium airlift C-290 Millennium and will be called Boeing Embraer – Defense. Embraer will retain 51% ownership in the program, while Boeing will hold a 49% stake.



Source: Boeing

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