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Brazil court suspends Boeing-Embraer deal until next year

A Brazilian federal court has at least temporarily blocked a US$4.75 billion joint venture between Boeing and Embraer until the incoming government takes office

Reported by: AP [ Published on: December 07, 2018 22:30 IST ]
Image Source : AP Brazil court suspends Boeing-Embraer deal until next year

RIO DE JANEIRO (AP) — A Brazilian federal court has at least 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 percent of the resulting company and Embraer the remaining 20 percent.

The left-leaning Workers' Party said Friday that Judge Victorio Giuzio Neto ruled this week to block the merger following a petition by of the party's congressmen. The lawmakers contend the deal will cost Brazil jobs and expertise.

Boeing declined to comment. Embraer sent a statement to The Associated Press saying it will appeal.

President-elect Jair Bolsonaro takes power Jan. 1.

Disclaimer: This is unedited, unformatted feed from the Associated Press (AP) wire.

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