July 6, 2018 / 8:11 AM / 4 months ago

BUZZ-Embraer will make Boeing even better - Melius

** Boeing Co to take over commercial aircraft arm of Brazilian planemaker Embraer SA under a new $4.75 bln joint venture, the firms said on Thursday

** Embraer will transfer much of its debt to the new venture and receive cash from Boeing; new company to give stiff competition to the CSeries jets designed by Canada’s Bombardier Inc and backed by European rival Airbus SE

** Five-star rated Melius research says Embraer will make Boeing even better; says although the JV marks a small change it will be strategically significant catalyst in BA’s ongoing transformation to a leaner, more profitable and more competitive company

** Melius says the deal closure will not face obstacles of significance as such; deal not focused solely on earnings accretion, but something more strategic instead

** Says the deal is about transforming BA’s cost structure, which stands in contrast to AIR’s acquisition of the BBD C-series

** BA believes Embraer’s expertise could be helpful in long-term cost front in BA’s Next Midsize Airplane (NMA) business case but doesn’t guarantee that an NMA launch is likely in the near term - Melius (Reporting by Aniruddha Chakrabarty)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below