Embraer and Boeing have welcomed approval by the government of Brazil of the strategic partnership that will position both companies to accelerate growth in global aerospace markets.

The government’s approval comes after the two companies last month approved terms for the joint venture that will be made up of the commercial aircraft and services operations of Embraer.

Boeing will hold an 80 per cent ownership stake in the new company and Embraer will hold the remaining 20 per cent.

The companies have also agreed to the terms of another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390.

Under the terms of this proposed partnership, Embraer will own a 51 per cent stake in the joint venture, with Boeing owning the remaining 49 per cent.

Once Embraer’s board ratifies its prior approval, the two companies will then execute definitive transaction documents.

The closing of the transaction will be subject to shareholder and regulatory approvals and customary closing conditions.

Assuming the approvals are received in a timely manner, the transaction is intended to close by the end of 2019.