RIO DE JANEIRO – A federal appellate court in Brazil revoked on Monday an injunction granted last week that blocked any imminent agreement for the negotiated tie-up between Brazilian aircraft maker Embraer and US-based Boeing.
The measure was revoked by an appeals panel in Sao Paulo, Embraer said in a statement to its stockholders.
The firm said that it would keep its stockholders and the market in general informed of any developments linked to the legal process.
The injunction on Boeing’s takeover of Embraer’s commercial airplane and services businesses had been granted by Judge Victorio Giuzio Nego at the request of four lawmakers from the leftist Workers Party (PT).
The magistrate who revoked the measure, Luiz Alberto de Souza Ribeiro, said in his ruling that “the suspension of the negotiations is causing serious harm and could, in fact, frustrate the negotiations.”
Embraer, the world leader in passenger aircraft for regional flights, and Boeing announced in July a preliminary agreement to create a third firm in the commercial aviation sector that would be valued at $4.75 billion.
According to what has been agreed to up to now, Boeing will have an 80 percent ownership stake in the new firm after making a payment of $3 billion to the Brazilian company, which will own the remaining 20 percent.
The negotiations were launched in December 2017 amid great secrecy and with Brazilian government participation, since it holds a golden share that it retained when Embraer was privatized in 1994.
Brazil’s incoming president, right-winger Jair Bolsonaro, has already said he is favorably inclined towards the deal.