Boeing has put forward plans for a multi-billion dollar joint venture with Brazilian rival Embraer.

The proposed joint venture would give the US manufacturer control of Embraer’s commercial aircraft business.

The transaction values Embraer’s commercial aircraft operations at $4.75 billion, and contemplates a value of $3.8 billion for Boeing’s 80% ownership in the joint venture.

The proposed partnership is expected to be accretive to Boeing’s earnings per share beginning in 2020 and to generate estimated annual pre-tax cost synergies of about $150 million by the third year of the arrangement.

“The strategic partnership will bring together more than 150 years of combined leadership in aerospace and leverage the two companies’ highly complementary commercial product lines,” Boeing said.

“The partnership is a natural evolution of a long-standing history of collaboration between Boeing and Embraer over more than 20 years.

“Boeing and the joint venture would be positioned to offer a comprehensive, highly complementary commercial airplane portfolio that ranges from 70 seats to more than 450 seats and freighters, offering best-in-class products and services to better serve the global customer base.”

Boeing chief executive Dennis Muilenburg said: “By forging this strategic partnership, we will be ideally positioned to generate significant value for both companies’ customers, employees and shareholders – and for Brazil and the United States.

“This important partnership clearly aligns with Boeing’s long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans.”