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Boeing Revs Up Airbus Challenge on $4.75 Billion Embraer Venture

  • Partnership to control Brazil company’s small-plane business
  • Pact extends aircraft duopoly as rivals emerge in Asia, Russia
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Boeing & Embraer Announce Partnership
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Boeing Co. is forming a $4.75 billion venture with long-time industrial partner Embraer SA, a move that will bolster its arsenal in the newest battlefront with Airbus SE: the market for smaller jetliners.

Under a preliminary deal, Boeing will own 80 percent of a partnership controlling Embraer’s commercial airplane and services businesses while the Brazilian manufacturer holds 20 percent, the companies said in a statement Thursday. The tie-up bolsters the duopoly held by Boeing and Airbus as competitive threats emerge from rivals in Russia, Japan and China.