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Brazil judge blocks Boeing-Embraer tie-up with new injunction

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Reuters SAO PAULO
Last Updated : Dec 20 2018 | 7:05 PM IST

SAO PAULO (Reuters) - A Brazilian judged on Thursday issued his second injunction blocking the proposed sale of 80 percent of planemaker Embraer's commercial aviation division to Boeing Co.

The same judge had 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.

Boeing declined to comment on the injunction while Embraer did not have an immediate comment.

Boeing and Embraer said on Monday they had finalized the terms of their deal, increasing the valuation of the Brazilian planemaker's commercial division to $5.26 billion, citing higher closing costs. The net proceeds will remain the same.

The agreement needs approval from the Brazilian government because it holds a so-called "golden share" in Embraer, which gives it veto power over strategic decisions and any change in its controlling interest. The planemaker formally sought the approval on Monday.

The previous injunction was in response to a separate class action, filed by four legislators from the left-wing Workers Party.

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(Reporting by Marcelo Rochabrun and Alberto Alerigi Jr; Editing by Christian Plumb and Jeffrey Benkoe)

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First Published: Dec 20 2018 | 6:55 PM IST

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