Embraer shareholders approve Boeing deal

Shareholders at Brazil’s Embraer approved Tuesday a deal to sell 80 percent of the airplane manufacturer’s commercial division to Boeing.

The deal will see Boeing take over Embraer’s core business of supplying passenger jets to airlines, leaving the Brazilian company with 20 percent.

The US giant will pay Embraer $4.2 billion for the stake.

Shareholders meeting at the company’s Sao Paulo headquarters also approved the creation of a joint venture to develop and promote the KC-390 military cargo plane.

Boeing will have 49 percent ownership of that company, with Embraer retaining 51 percent.

Embraer shares rose more than 4 percent on the Sao Paulo stock exchange before settling to 2.6 percent by noon.