Shareholders of Embraer on Tuesday approved the company™s proposed strategic partnership with Boeing (NYSE: BA) during a meeting held in Brazil.
Boeing said Tuesday shareholders owning 67 percent of Embraer™s outstanding shares participated in the meeting with 96.8 percent voted to approve the transaction.
Embraer stockholders cleared the proposal to develop new markets for the KC-390 military transport aircraft under a joint venture in which Boeing will hold a 49 percent ownership stake.
The shareholders also approved the plan to form a commercial aviation-focused JV. Under this JV, Boeing will own 80 percent of the business and Embraer will hold the remaining stake.
Embraer will continue to independently run the KC-390 multimission airlifter program and commercial aviation business until the completion of the transaction, which is expected by the end of 2019.
The shareholder vote came a month after the government of Brazil approved the Boeing-Embraer partnership.
