A federal court in Brazil has issued an injunction to stop the proposed commercial aviation joint venture between Embraer and Boeing, following a lawsuit filed against the deal by four lawmakers in Brazil.
The judge who granted the injunction says that Embraer would be giving up its profitable commercial aviation business if it embarks on the deal with Boeing, says a Reuters report.
Embraer says it will seek to overturn the injunction. It calls the injunction a "provisional measure to suspend the effects" of an eventual decision by Embraer's board to approve the Boeing tie-up.
The injunction does not impose "any kind of obstacles to the continuance of the negotiations between both companies", says Embraer.
Boeing declines to comment when contacted by FlightGlobal.
The injunction could further hold up the process for the approval of the proposed joint venture, which was officially announced in July.
Embraer had previously 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. Brazil President-elect Jair Bolsonaro is reportedly supportive of the planned partnership between the two companies.
While previous reports have said that Embraer will finalise talks with Boeing by 5 December, the Brazilian company subsequently said it could not specify a deadline for when talks would conclude.
Embraer has said that it plans to close the deal with Boeing 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%. Brazil's government, which has a golden share in Embraer, has the right to veto the deal.
Story updated with Embraer comment