The new company, encompassing Embraer’s commercial aircraft and services businesses, should make Boeing the market leader for smaller passenger jets, creating stiffer competition for the CSeries aircraft program designed by Canada’s Bombardier Inc (
BBDb.TO) and backed by European rival Airbus SE (
AIR.PA).
The deal values Embraer’s commercial aircraft operations, the world’s third-largest, at $4.75 billion and Boeing’s 80-percent ownership stake in the joint venture at $3.8 billion, the companies said.