Brazil Judge suspends Boeing-Embraer deal for second time

RIO DE JANEIRO – A Brazilian judge has for the second time in a month stalled a US$5.26 billion deal between airplane manufacturers Boeing and Embraer.

The temporary injunction issued Wednesday by Judge Victorio Giuzio Neto comes three days after the companies agreed to terms. A superior court overruled a similar decision by Neto only 10 days earlier.

Boeing is to receive 80 per cent of the joint venture and Embraer the remaining 20 per cent. The subsidiary is expected to take on all of Embraer’s commercial aviation activities.

Neto’s ruling follows a petition by labour unions.

The agreement between the two companies is championed by Embraer as necessary to keep the company competitive.

Workers organizations say that the joint-venture is, in fact, a sale and will move most of the business to the U.S.