https://istoe.com.br/juiz-federal-de-sp-suspende-fusao-entre-boeing-e-embraer/
Composition of Boeing and Embraer logos - AFP
The Federal Court of So Paulo has suspended any decision of the Embraer Board that allows segregation and transfer of the commercial part of the company to the US company Boeing. The deal would create a joint venture valued at $ 4.8 billion, in which 80% of the shares would be from Boeing and 20% from Embraer. The decision was taken on Wednesday, 5, but the Attorney General's Office (AGU) said it has not yet been notified.
The decision was made by Judge Victorio Giuzio Neto, of the 24th Federal Civil Court of So Paulo, in a lawsuit filed by PT federal deputies Paulo Pimenta (RS), Carlos Zarattini (SP), Nelson Pellegrino (BA) and Vicente Cndido (SP) against Embraer. In the order, the judge mentions the closeness of the Judiciary recess, the inauguration of President-elect Jair Bolsonaro and his new team, and the renewal of the Congress as reasons to justify the injunction.
The judge points out that it would be possible for the Embraer Council to effect segregation in the transition period between the government of President Michel Temer and the future Bolsonaro government. According to him, the Council could create a "factual situation of difficult or impossible reversal" in that period. Despite this, he emphasizes that he did not impose any obstacle to the continuity of the negotiations between the two companies.
"Lastly, the Court did not fail to consider that this decision does not cause a serious damage to the economy and public order and is precisely contained in the object of popular action in order to allow the citizen to act effectively in the protection of the patrimony which, in this case, is represented by the special class action held by the Federal Government in Embraer under threat of reducing its scope, limiting it to only a part of Embraer unless it is segregated, "the decision says.