Boeing increases value for Embraer's commercial business to $5.26 billion

© Reuters. FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company’s headquarters in Sao Jose dos Campos

By Marcelo Rochabrun and Carolina Mandl

SAO PAULO (Reuters) – Brazil’s Embraer (SA:) said on Monday it had finalised the terms of a proposed deal to sell 80 percent of its commercial aviation business to Boeing, (N:) now valuing the division at $5.26 billion (4.17 billion pounds).

As originally announced in July, the deal valued Embraer’s commercial division at $4.75 billion.

Embraer now expects it will receive $3 billion from the deal, after accounting for closing costs. It is unclear whether any part of this difference relates to debt.

The deal still requires approval from the Brazilian government, which holds veto power over important business decisions at Embraer, and from the company’s shareholders. But a source close to the negotiations said they were optimistic about the prospects.

President-elect Jair Bolsonaro and his entourage have spoken favorably of the Boeing-Embraer deal.

The other terms of the deal, as publicly announced on Monday, remain unchanged from when the joint venture was first announced.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.