Boeing has signed a deal to purchase the commercial arm of Brazil’s Embraer after long arguments inside Brazil about letting the group fall into foreign ownership.
The deal specifically leaves out the military arm of the group, but includes a programme to develop the medium range small tanker aircraft the KC-390, in a joint venture arrangement.
The agreement will see $3 billion passed to the owners of Embraer, once the Brazilian Government agrees to the terms, which is expected to be a formality.
Embraer said after the transaction completes in 2019 it will be left with cash of $2.6 billion. For Boeing it means it has effective ownership of the Airbus A200 series competitor, The Embraer E2.