Embraer says it will "take all applicable judicial measures" to seek the overturn of a second injunction issued against its proposed commercial aviation joint venture with Boeing.
A Brazilian judge granted a preliminary injunction on 19 December to block the sale of the airframer's commercial aviation business to Boeing, until parties in the case have an opportunity to respond. Reports say the injunction follows a class action suit by Embraer's union to block the deal.
"The company will take all applicable judicial measures to revert this decision and will keep its shareholders and the market informed on any material developments related to the public civil action," says Embraer.
The injunction is the second such court decision in recent weeks against the planned tie-up between Embraer and Boeing. An injunction was granted earlier this month, following legal action by a group of Brazilian lawmakers to stop the deal. But this was overturned days later by a federal appeals court.
On 17 December, Boeing and Embraer announced they had agreed to terms of the proposed deal, which they hope 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 joint venture 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. The deal is also subject to approvals from regulatory authorities and the companies' shareholders.
Source: Cirium Dashboard
