Federal court authorities in São Paulo issued a provisional injunction temporarily suspending the agreement between companies Embraer and Boeing.
Federal Judge Souza Ribeiro overruled the preliminary injunction temporarily suspending the process transferring Embraer to Boeing. The judge decided the citizen suit was “hasty, unfounded, with no demonstration of legal problems in the business transaction in progress.”
The Attorney-General’s Office (AGU), the agency aimed at judicially protecting the interests of the Brazilian state, said it will appeal the ruling issued by a federal court in São Paulo which suspended the sale of Embraer to aviation giant Boeing.
Brazilian jet maker Embraer at São Paulo Stock Exchange Bovespa plunged after the creation of a joint venture with US giant Boeing was unveiled.
Embraer and Boeing announced Wednesday (Jul. 5) they are to form a joint venture encompassing all of the Brazilian company’s commercial aviation business and services. The US giant is to pay $3.8 billion to hold 80% control of the new operation, estimated at $4.7 billion.