Shares of Boeing were up 2% to $325.13 in early afternoon trading, while Embraer was up 4.78% to $22.13
Valuation figures were disclosed in the final terms of the joint venture. Embraer said the division is now worth $5.26 billion, an 11% increase from the original offer, which was announced in July.
Boeing said the transaction would be neutral to its earnings per share in 2020 and add to the bottom line thereafter. Transaction costs have increased and Embraer said it expects it will receive $3 billion, after accounting for closing costs.
Once the transaction has closed, the commercial aviation joint venture will be led by Brazil-based management, including a president and chief executive officer.
Boeing will have operational and management control of the new company, which will report to Dennis Muilenburg, Boeing chairman, president and CEO. Embraer will retain consent rights for certain strategic decisions, such as transfer of operations from Brazil.
Boeing said the transaction is subject to approval by the Brazilian government and Embraer's board. Assuming the approvals are received in a timely manner, Boeing said, the transaction is intended to close by the end of 2019.
Embraer also announced another joint venture with Boeing to promote and develop new markets and applications for the multi-mission airplane KC-390, a medium-size, twin-engine jet-powered military transport aircraft. Embraer will have a 51% stake in the operation.