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July 5, 2018, 7:20 a.m. EDT

Boeing and Embraer to form aerospace JV, with Boeing's stake to be valued at $3.8 billion

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By Tomi Kilgore

Boeing Co. /zigman2/quotes/208579720/composite BA +1.26% and Brazil-based Embraer S.A. /zigman2/quotes/201881360/composite ERJ +4.22% /zigman2/quotes/201576050/delayed BR:EMBR3 +2.73% announced Thursday a partnership to help both companies accelerate growth in the aerospace market. Boeing's stock rose 0.4% in light premarket trade, while Embraer's U.S.-listed shares were indicated up over 4%. The companies are planning to form a joint venture, of which Boeing will have an 80% stake. The deal would value Boeing's ownership in the JV at $3.8 billion, and value 100% of Embraer's commercial aircraft operations at $4.75 billion. Boeing expects the partnership to add to earnings beginning in 2020, and create annual cost synergies of about $150 million by the third year. Boeing's stock has rallied 13% year to date through Tuesday, while Embraer shares have climbed 9.5% and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +1.27% has slipped 2.2%.

/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 169.99
+2.11 +1.26%
Volume: 4.35M
Aug. 12, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$100.94 billion
Rev. per Employee
$427,768
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/zigman2/quotes/201881360/composite
US : U.S.: NYSE
$ 11.60
+0.47 +4.22%
Volume: 3.23M
Aug. 12, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$2.12 billion
Rev. per Employee
$251,126
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/zigman2/quotes/201576050/delayed
BR : Brazil: Bovespa
R$ 14.69
+0.39 +2.73%
Volume: 6.77M
Aug. 12, 2022 5:07p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
R$10.79 billion
Rev. per Employee
R$1.32M
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,761.05
+424.38 +1.27%
Volume: 320.97M
Aug. 12, 2022 6:27p
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