Sao Paulo, Brazil - On May 23, Boeing announced that it would drop Embraer brand. The American aircraft manufacturer plans to name the Embraer's Commercial Aircraft division as Boeing Brazil - Commercial.
Boeing signed an agreement with the Brazilian aircraft manufacturer to take over 80% of Embraer’s commercial aircraft division for $4.2 billion.
With this takeover, the American aerospace giant aims to compete with Airbus in 100 to 150-seat jet market. Airbus had taken over 50.01% of Bombardier's CSeries program last year in July. Airbus rebranded Canadian manufacturer's CSeries jets as A220 after the takeover.
It is not known yet known whether Boeing would rebrand the Embraer's small and mid-sized jets.
The new corporate name marks the end of an era. Boeing and Airbus strengthened their positions in the $150 billion market by absorbing the smaller players in the industry.
Embraer was established in 1969 as a state-run company. The company became an international icon of the country over time. The manufacturer was privatized in 1994.
The Embraer name will now only exist as a brand focused on defense industry and business jets.
The takeover deal between Boeing and Embraer is subject to regulatory approval.