What the Embraer-Boeing deal means for both companies

embraer-boeing deal
Embraer-Boeing deal announced on Thursday

Since news first broke of talks between Embraer and Boeing in December 2017, the Brazilian company’s stock has increased by an approximate 65 percent. On July 5, however, the stock crashed by almost 15 percent – after the Embraer-Boeing deal finally materialized. The two plane manufacturers announced that they will create a third company, worth USD 4.75 billion.

While the amount was considered fair, market analysts were expecting more. Last May, Boeing took over KLX, a U.S. aerospatial equipment producer, in a USD 4.2 billion deal. That explains part of the drop in the...

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