A Brazilian federal court on Thursday granted an injunction blocking the proposed tie-up between U.S. planemaker Boeing Co and Embraer SA , a deal the Brazilian company says is crucial to its survival.
The deal has stalled partly because the Brazilian government, which has veto power at the planemaker, has been reluctant to give it a greenlight. Only then could the company call a shareholders meeting to approve it.
In his decision, judge Victorio Giuizio Neto cast doubt that the proposed deal would be good for Embraer’s bottom line.
“The reason is very simple, Boeing is not giving up anything” in this transaction, he wrote. The decision says Embraer would give up its profitable commercial division.
He added that the new company would threaten the rights of the Brazilian government because it would restrict its control over Embraer to the part of the company that will not be sold to Boeing.
More Details Here is the Link:
Credits by Dj’s Aviation