A Brazilian appeals court has reversed a lower court’s provisional decision that would have prevented Embraer and Boeing from finalizing terms of their proposed joint venture (JV).
The Dec. 10 decision from Brazil’s Second Panel of the Federal Court of Appeals of the Third Region was “revoked,” Embraer said in a brief filing to financial regulators. It did not comment further.
The Dec. 6 court decision by the 24th Federal Civil Court of São Paulo decision came in response to a class-action suit filed by Workers Party lawmakers, who are against the deal. Both Embraer and the Brazilian government appealed the decision.
Unions have expressed concern the proposed tie-up would cause Embraer to cut jobs as part of a larger work-sharing agreement between the two companies. The proposed JV calls for Boeing to take an 80% stake Embraer’s commercial operations, while Embraer will control the rest…
