Court sus­pends $4.75B Boe­ing deal

The Citizens' Voice - - BUSINESS -

A Brazil­ian fed­eral court has at least tem­po­rar­ily blocked a $4.75 bil­lion joint ven­ture be­tween Boe­ing and Em­braer un­til the in­com­ing gov­ern­ment takes of­fice.

The two aerospace com­pa­nies an­nounced their in­ten­tions in July to cre­ate a merger to run Em­braer’s com­mer­cial avi­a­tion busi­ness. The deal would re­sult in Boe­ing hold­ing 80 per­cent of the re­sult­ing com­pany and Em­braer the re­main­ing 20 per­cent.

The left-lean­ing Work­ers’ Party said Fri­day that Judge Vic­to­rio Gi­uzio Neto ruled this week to block the merger fol­low­ing a pe­ti­tion by of the party’s con­gress­men. The law­mak­ers con­tend the deal will cost Brazil jobs and ex­per­tise.

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