Brazilian aerospace conglomerate Embraer SA has confirmed it has agreed terms to sell 80% of its commercial aviation business to Boeing for US$4.2 billion.
The deal means Embraer’s commercial aviation business is valued at $5.26 billion.
Embraer has long had severe debt, totalling around $4 billion, however it expects it will receive $3 billion after accounting for closing costs, according to reports.
The deal had to be agreed by the Brazilian government, as in Brazil conglomerates must seek state authorisation for such endeavours.
Part of the deal has also been confirmed as a joint venture between Embraer and Boeing to promote a defence plane - the KC-390.
Embraer will have a 51% stake in that operation.