Brazil Judge Again Blocks Boeing-Embraer Tie-Up As Deal Nears Close (excerpt)
(Source: Reuters; published Dec 20, 2018)
SAO PAULO --- A Brazilian judge on Thursday issued his second injunction blocking the proposed sale of 80 percent of planemaker Embraer’s commercial aviation division to Boeing Co., as attempts to stop the deal intensified while the two companies neared closing the transaction.

The same judge issued a similar injunction earlier this month that was swiftly appealed and overturned last week. The latest decision was in response to a class action filed by Embraer’s union in Sao Jose dos Campos, where the planemaker is based.

Embraer said it “will take all necessary judicial measures” to overturn the injunction. Boeing declined to comment.

Embraer shares were down almost 1.5 percent in Sao Paulo on Thursday afternoon after rising almost 3 percent in the morning before news of the injunction.

Challenges to the deal, which would help reshape the global aviation market as competition between Boeing and Airbus intensifies, have been plentiful and are common in Brazil.

Four left-wing congressmen also challenged the proposed tie-up and won the previous injunction. Prosecutors with Brazil’s labor ministry are investigating whether the tie-up could lead to job losses. An investor group sued on Monday, saying the deal should have been a public tender offer. (end of excerpt)

Click here for the full story, on the Reuters website.


prev next

Official reports See all