Boeing is buying a majority stake in Embraer's commercial aircraft and services operations for $4.2 billion.

The joint venture, announced Monday, gives Boeing 80 per cent ownership of those operations, with Embraer owning the remaining stake.

Boeing will have operational and management control of the company. Embraer will keep consent rights for some decisions, such as the transfer of operations from Brazil.

The deal still needs approval from the Brazilian government, as well as shareholders and regulators.

The planned tie-up with Embraer could put pressure on Bombardier Inc. and its C Series joint venture with Airbus.

The companies also agreed to another joint venture to promote and develop new markets for the multi-mission medium airlift KC-390, a defence aircraft. Embraer will own a 51 per cent stake in the joint venture, with Boeing owning the remaining 49 per cent. The transaction is targeted to close by the end of next year.

It was unclear how long the government could take to make a decision, but President-elect Jair Bolsonaro and his aides have spoken favorably of a Boeing-Embraer deal. Bolsonaro begins his presidency on Jan. 1.

Brazilian Treasury Secretary Mansueto Almeida said on Monday the government was likely to complete its review of the deal at the beginning of Bolsonaro's presidency.

The deal is also subject to shareholder approvals at both Embraer and Boeing.

With files from Reuters