Brazilian justice allows Boeing-Embraer venture to proceed

RIO DE JANEIRO (AP) — A Brazilian justice is allowing airplane manufacturers Boeing and Embraer to proceed with a joint venture, overruling a temporary injunction that stalled the deal.

The decision was made Saturday morning by Federal Court President Therezinha Cazerta, who said that the matter is outside the court’s purview.

The $5.26 billion venture was stalled by Judge Victorio Giuzio Neto, who foiled the companies’ intentions on another occasion earlier in the month.

Labor unions say that it’s actually a sale and will move most of the business to the U.S.

Advertisement

Under the current terms, Boeing is to receive 80 percent of the venture and Embraer the remaining 20 percent. The subsidiary is expected to take on all of Embraer’s commercial aviation activities.

The agreement between the two companies is championed by Embraer as necessary to keep the company competitive.

Copyright © 2019 The Associated Press. All rights reserved. This website is not intended for users located within the European Economic Area.