SAN FRANCISCO, July 5 (Xinhua) -- U.S. aerospace leader Boeing Company announced Thursday that it has struck a deal to buy the commercial jet business of Brazil's top aircraft manufacturer Embraer under a new 4.75-billion-U.S.-dollar joint venture.

Boeing said it has signed a Memorandum of Understanding with Embraer to establish a strategic partnership that "positions both companies to accelerate growth in global aerospace markets."

Under the agreement, Boeing would take 80 percent of stakes, valued at 3.8 billion dollars, in a new company spun out of Embraer, the world's largest manufacturer of regional jets, which would own the remaining 20 percent.

On finalization, the joint venture will be led by Brazil-based management, including a president and chief executive officer, while Boeing will have operational and management control of the new company, said Boeing.

The new deal will put Boeing in a stronger position to compete with Canada's Bombardier and its European rival Airbus on the market of smaller passenger jets.

The proposed partnership is expected to increase Boeing's earnings per share beginning in 2020 and generate estimated annual pre-tax cost synergies of approximately 150 million dollars in the third year.

"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," said Dennis Muilenburg, Boeing's chairman, president and chief executive officer.

Boeing said the two companies will also create another joint venture to promote and develop new markets and applications for defense products and services, especially the KC-390 multi-mission aircraft.

The joint investments in the KC-390 program will enhance the competitiveness of Boeing and Embraer on global market, said Nelson Salgado, Embraer's executive vice president of financial and investor relations.