Boeing and Embraer close to final agreement

4 July 2018

Planemakers Boeing Co (BA.N) and Embraer SA have prepared contracts of their proposed tie-up and are expected to submit them to the Brazilian government within two weeks, Brazilian newspaper Valor Economico reported on its website Monday.

The companies said in April they were in talks to set up a new company focused on commercial aviation, excluding Embraer’s defense division and possibly its business jet unit. The tricky work of divvying up the three business segments of Embraer had been delaying the deal.

According to the report, the contracts define how Boeing and Embraer’s engineers will be divided between the new company controlled by Boeing, and a defense company that Embraer will retain.

A conclusion of the talks is near, the paper said, citing sources close to the talks.

Boeing did not immediately comment. Embraer said “talks are still ongoing” without elaborating on contracts or potential end date for the talks.