A Brazilian federal court has temporarily blocked a US$4.75 billion joint venture between Boeing and Embraer until the incoming government takes office.
The two aerospace companies announced their intentions in July to create a merger to run Embraer’s commercial aviation business. The deal would result in Boeing holding 80% of the resulting company and Embraer the remaining 20%.
Judge Victorio Giuzio Neto ordered the companies to provisionally “suspend any concrete effect of an eventual decision of the board of Embraer” to transfer the commercial jet unit of Embraer to Boeing “through a joint venture.”
The judge added that the change in government on January 1 “makes it advisable to avoid any concrete actions to take place in this period creating a factual situation of difficult or impossible reversal through the concretisation” of the deal between both companies.
Full Content: The Financial Times
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