Brazilian Judge Blocks Boeing/Embraer Deal Again
MIAMI — Once again, a Brazilian judge has blocked the sale of the
Embraer’s commercial aviation business to Boeing. On December 19, the repeat
injunction allegedly follows a class action suit placed by the Brazilian planemaker’s
unions, who claim that should the deal go forward, job losses will occur in
Brazil.
Yesterday’s
injunction, however, was backed by four left-wing congressmen.
Embraer
issued a statement, stating that “The company will take all applicable judicial
measures to revert this decision and will keep its shareholders and the market
informed on any material developments related to the public civil action.”
An
official statement from Boeing has yet to be heard.
Both Boeing and Embraer announced on
Monday that they had
finalized the agreement on their deal, raising Embraer’s valuation to $5.26
billion.
Boeing and Embraer agreed to the terms
for the strategic partnership both manufacturers are seeking to remain
competitive against the Airbus and Bombardier marriage that occurred earlier
this year.
The new agreement between the American
and Brazilian manufacturers will come as a Joint Venture where Boeing will hold
an 80% stake in Embraer’s Commercial Aircraft Services Operations, while
Embraer remains with a 20% stake.
Once
the deal is complete, the Joint Venture will have its main offices in Brazil,
with a President and Chief Executive Officer reporting directly
to Boeing’s CEO, Dennis Muilenburg.
Any
agreement coming out of the potential sale of Embraer’s assets need the
approval from the Brazilian government, which owns a “golden share” in the
manufacturer.
The
Brazilian judge, Victor Giuizo Neto, who issued the injunction, said
that “The brutal asymmetry in the shareholder structure of this venture
prevents it from being carried out without compromising the survival of
national interests.”
Source: airwaysmag.com
Embraer KC-390 receives a type certification Brazilian aviation authority
First Series Production KC-390 Successfully Performs First Flight
Boeing, Embraer partnership on KC-390 could involve engineering collaboration
KC-390 at Farnborough 2018 - Video
First Series Production KC-390 Successfully Performs First Flight
Boeing, Embraer partnership on KC-390 could involve engineering collaboration
KC-390 at Farnborough 2018 - Video
No comments:
Post a Comment