A Brazil appeals court judge has struck down a second injunction issued last week against the proposed commercial aviation joint venture between Embraer and Boeing.
The move marks another legal victory for Embraer as it seeks to get Brazilian government approval for the tie-up with Boeing, although it remains to be seen if there will be further legal challenges against the deal.
Embraer says it will keep shareholders and the market informed on any developments related to the legal action.
The injunction that was revoked had been granted by a Brazilian judge, following a class action lawsuit by Embraer's labour union against the proposed partnership between Embraer and Boeing.
Earlier in December, another injunction was granted after a group of lawmakers opposed the deal. But this injunction was also overturned days later by an appeals court.
Boeing and Embraer announced on 17 December that they had agreed to terms of their proposed partnership, which they plan to close by end-2019. Boeing will acquire 80% of Embraer's commercial aviation division for $4.2 billion, with Embraer retaining the remaining 20% share.
The new company formed from the deal will be controlled by Boeing, but based in Brazil with a chief executive and president.
Brazil's government, which has a golden share in Embraer, has the right to veto the planned tie-up. President-elect Jair Bolsonaro, who assumes office on 1 January, has indicated he is in favour of the deal. The tie-up is also subject to approvals from regulatory authorities and the companies' shareholders.