Brazilian aerospace conglomerate Embraer SA has confirmed it has agreed terms to sell 80% of its commercial aviation business to Boeing for US$4.2 billion.
The deal means Embraer’s commercial aviation business is valued at $5.26 billion.
Embraer has long had severe debt, totalling around $4 billion, however it expects it will receive $3 billion after accounting for closing costs, according to reports.
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The deal had to be agreed by the Brazilian government, as in Brazil conglomerates must seek state authorisation for such endeavours.
Part of the deal has also been confirmed as a joint venture between Embraer and Boeing to promote a defence plane - the KC-390.
Embraer will have a 51% stake in that operation.
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