Workers' Party Class Action Blocks Embraer-Boeing Merger

Court decision is still subject to appeal; judge recommends waiting until the start of the new administration

Joana Cunha
São Paulo

A Brazilian Federal court decision put the forming of a joint venture between airplane makers Boeing (US) and Embraer (Brazil). The preliminary ruling was in favor of class action brought forth by a group of Federal Representatives from the Workers' Party (PT) and can be appealed.

The court order was announced on Wednesday (5th). The ruling, written by the São Paulo federal judge Victorio Giuzio Neto orders the suspension of any practical measures taken by Embraer's board to transfer its commercial jets division to Boeing.

PT representatives Paulo Pimenta (RS) Carlos Alberto Zarattini (SP), Nelson Pellegrino (BA), and Vicente Cândido (SP) submitted the class action.

Boeing's purchase of 80% of Embraer's commercial jet division for US$ 3,8 billion was settled last July with a memorandum of understanding, but the deal is still incomplete.

In his ruling, judge Giuzio Neto argues that it's in the country's best interest not take irreversible measures during a transition period between administration as it is the case right now.

Translated by NATASHA MADOV

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