The Brazilian government has approved Embraer S/A’s ERJ, -1.99% and Boeing Co.’s BA, +2.55% joint venture, the two companies said late Thursday. Boeing and Embraer last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer, with Boeing holding an 80% stake in the new company and Embraer holding the remaining 20%. In the same statement, the companies said they have also agreed to the terms of another joint venture to promote and develop new markets for Embraer’s KC-390, an airlift plane. Under the terms of this proposed partnership, Embraer will own a 51% stake in the joint venture, with Boeing owning the remaining 49%. The deal is expected to close at the end of 2019, subject to shareholder and regulatory approvals. Boeing stock and Embraer’s American depositary shares were flat in the extended session after ending the regular trading day up 2.6% and 2% lower, respectively.
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