Embraer-Boeing Joint-Venture Expected To Hire 9,000 People In Brazil

Agreement that will create NewCo should be voted by Embraer shareholders within the month

São Paulo

The company created from Boeing's purchase of Embraer's commercial aviation division is expected to employ 9,000 people in Brazil.

The yet to be named joint-venture (known internally as NewCo, an acronym for New Company) was formalized on Thursday (17th) by the two companies.

The final details, sources close to the deal say, are still pending adjustments by the two legal departments. Two issues were giving lawyers some trouble: staffing and the stand of Embraer's intellectual property.

Last week, the deal was approved by the Brazilian government, which retained veto power from Embraer's 1994 privatizations.

Negotiations lasted one year, and once the contract is signed, Embraer's shareholders will be consulted within 30 days.

The overall expectation is that the shareholders will also greenlight the merger, due to the announcement that they will receive US$ 1.6 billion in dividends from the deal. Boeing will pay Embraer US$ 4.2 billion in exchange of 80% of company control, and the remaining 20% will continue under Brazilian control. Embraer retained the defense and private jet divisions.

It's still unclear which employees will migrate from "old Embraer" to NewCo and who will remain in the company.

Translated by NATASHA MADOV

Read the article in the original language