Embraer says it will try to reverse that decision suspended agreement with Boeing

Embraer announced that it will try to reverse the decision of the Federal Court which suspended the company's merger agreement with Boeing. In a statement, the brazilian aircraft manufacturer said it "will take all the appropriate judicial measures to reverse" the injunction (interim decision) granted by the 24th Federal Civil Court of Sao Paulo. The judge Victorio Giuzio Grandson suspended the merger when parsing a class action lodged by deputies Paulo Pimenta (PT-RS) and Carlos Zaratini (PT-SP). The decision is Wednesday (5). "Partially Defiro the injunction, temporary and precautionary measure to suspend any concrete effect to any decision of the Council of Embraer nodding with segregation and transfer the business side of Embraer to Boeing through ' Joint Venture ' be created, "said the judge in the decision. According to the magistrate, the measure also was necessary due to the proximity of the recess of the judiciary and the inauguration of President-elect Jair Bolsonaro, scheduled for January 1. The goal, said Giuzio Naik, is to avoid concrete acts that are impossible to be reverted. He did not, however, that the companies continue to negotiate a merger. In the decision, the magistrate pointed out that, in his assessment, the greater risk is the agreement to generate an exchange of military secrets, which can harm the sovereignty of the country. Embraer highlighted in the notice to the market that the judge partially granted the injunction, "without opposing any kind of obstacle to the continuation of the negotiations between the two companies". Agreement between Boeing and Embraer in July, Boeing and Embraer signed an agreement of intent to form a joint venture (new company) in the area of commercial aviation, valued at $ $4.75 billion. In July, Boeing and Embraer signed an agreement of intent to form a joint venture (new company) in the area of commercial aviation, valued at $ $4.75 billion. Understand why aviation Giants are joining the agreement, the new company will take over the business of commercial Aviation Embraer and its related operations, services and engineering capabilities. Boeing will have 80% of the joint venture, while the Embraer will retain a 20% stake. The deal still depends on the approval of the shareholders – among which is the Brazilian Government – and the Brazilian market regulators and American. Embraer's expectation is that the deal be completed by 2019.