Brazil court suspends Boeing’s $4.75 billion 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.
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.