Boeing increases value for Embraer’s commercial business to $5.26 billion

FILE PHOTO: The logo of Brazilian planemaker Embraer SA is seen at the company’s headquarters in Sao Jose dos Campos, Brazil February 28, 2018. REUTERS/Roosevelt Cassio/File Photo

SAO PAULO (Reuters) – Brazil’s Embraer said on Monday it had finalised the terms of a proposed deal to sell 80 percent of its commercial aviation business to Boeing, now valuing the division at $5.26 billion.

As originally announced in July, the deal valued Embraer’s commercial division at $4.75 billion.

Embraer now expects it will receive $3 billion from the deal, after accounting for closing costs. It is unclear whether any part of this difference relates to debt.

The deal still requires approval from the Brazilian government, which holds veto power over important business decisions at Embraer, and from the company’s shareholders. But a source close to the negotiations said they were optimistic about the prospects.

President-elect Jair Bolsonaro and his entourage have spoken favorably of the Boeing-Embraer deal.

The other terms of the deal, as publicly announced on Monday, remain unchanged from when the joint venture was first announced.

Reporting by Marcelo Rochabrun; Editing by Kirsten Donovan and Adrian Croft

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