A 195 model from the Brazilian plane-maker Embraer is displayed by the Belarusian Belavia air company at the national airport in Minsk, Belarus, on Dec. 12. Boeing is buying a majority stake in Embraer’s commercial aircraft and services operations for $4.2 billion. (AP Photo/Sergei Grits, File)

A 195 model from the Brazilian plane-maker Embraer is displayed by the Belarusian Belavia air company at the national airport in Minsk, Belarus, on Dec. 12. Boeing is buying a majority stake in Embraer’s commercial aircraft and services operations for $4.2 billion. (AP Photo/Sergei Grits, File)

Boeing buying 80% stake in Embraer for $4.2 billion

Boeing will have operational and management control. Embraer keeps consent rights for some decisions.

Associated Press

CHICAGO — Boeing is buying a majority stake in Embraer’s commercial aircraft and services operations for $4.2 billion.

The joint venture, announced Monday, gives Boeing 80 percent ownership of those operations, with Embraer owning the remaining stake.

Boeing will have operational and management control of the company. Embraer will keep consent rights for some decisions, such as the transfer of operations from Brazil.

The deal still needs approval from the Brazilian government, as well as shareholders and regulators.

The companies also agreed to another joint venture to promote and develop new markets for the multi-mission, medium airlift KC-390. Embraer will own a 51 percent stake in the joint venture, with Boeing owning the remaining 49 percent. The transaction is targeted to close by the end of next year.

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