Shareholders of Brazilian aerospace firm Embraer have approved the $4.2bn transaction to sell an 80% interest in the company’s commercial aircraft operations to Boeing.

The companies finalised the terms of the strategic partnership last December and received the approval from the Brazilian Government last month.

The joint venture (JV) comprising the commercial aircraft and services operations of Embraer will be 80% owned by Boeing. Embraer will hold the remaining 20% in the JV.

Boeing expects the partnership to be neutral to its earnings for each share in 2020 and accretive thereafter.

Valuing Embraer’s commercial aircraft operations at $5.26bn, the deal is expected to deliver estimated annual pre-tax cost synergies of around $150m by the third year of operations.

“Our agreement will create mutual benefits and boost the competitiveness of both Embraer and Boeing.”

During a general shareholders’ meeting in Brazil, around 96.8% of shareholders voted in favour of the strategic partnership.

Embraer president and CEO Paulo Cesar de Souza e Silva said: “This groundbreaking partnership will position both companies to deliver a stronger value proposition for our customers and other stakeholders and create more opportunities for our employees.

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“Our agreement will create mutual benefits and boost the competitiveness of both Embraer and Boeing.”

The completion of the deal is now anticipated to take place by the end of this year pending regulatory approvals and other customary closing conditions.

Shareholders also approved another JV between the companies to promote and develop new markets for the multimission medium airlift KC-390.

Embraer will have a 51% ownership interest in the proposed JV, while Boeing will hold the remaining 49%.

Boeing chairman, president and CEO Dennis Muilenburg said: “Approval by Embraer’s shareholders is an important step forward as we make progress on bringing together our two great aerospace companies.

“This strategic global partnership will build on Boeing’s and Embraer’s long history of collaboration, benefit our customers and accelerate our future growth.”