U.S. aerospace company Boeing Co. and Brazilian planemaker Embraer SA have overcome a major hurdle for their proposed joint venture after the Brazilian government approved the proposed partnership.
Both companies confirmed the government's approval, saying the partnership will position them to accelerate growth in global aerospace markets. Under the agreement, Boeing will buy an 80% stake in Embraer's commercial aircraft and services operations for an estimated $4.2 billion.
The Brazilian government's approval comes after both companies faced court injunctions that threatened the proposed venture. The injunctions were later overturned.
Boeing and Embraer must now seek approval from shareholders and regulators before they can close the deal, expected by the end of 2019.
The companies also agreed to the terms of another joint venture to promote and develop new markets for the multimission medium airlift KC-390. Embraer will own 51% of this joint venture, while Boeing will hold the remaining 49%.