Advertising

Brazil court overturns injunction against Boeing-Embraer deal

A Brazilian federal appeals court has overturned the injunction issued last week to stop the commercial aviation tie-up between Embraer and Boeing.

Embraer says the "provisional measure" was revoked by a panel of a federal appeals court.

"The company will keep its shareholders and the market informed on any material developments related to the class action," it adds.

A federal court in Brazil issued an injunction last week to block the proposed commercial aviation joint venture between the two companies, following a class action lawsuit brought against the planned deal by a group of Brazilian lawmakers in July.

Boeing and Embraer have yet to finalise a deal, which requires approval from Brazil's government and company shareholders.

Embraer had said it planned to secure Brazil government approval for the partnership within the current administration of Brazil president Michel Temer, whose term ends on 31 December. Incoming president Jair Bolsonaro is reportedly supportive of the planned partnership between the two companies.

The two companies plan to close the deal by end-2019. Under the proposed tie-up, Boeing will purchase an 80% share of Embraer's commercial aircraft business for $3.8 billion, leaving Embraer with the remaining 20%.

Related Content
Advertising
Advertising