The Brazilian Justice on Thursday demolished the injunction issued by a judge in Sao Paulo and temporarily suspended the merger between the Brazilian aircraft manufacturer Embraer and the American Boeing, whose final terms were announced this week.
A court of second instance attended the appeal made by the General Legal Profession of the Union (AGU), body in charge of the legal affairs of the Government and that warned that "the maintenance of the precautionary could cause serious injury to the public-administrative order and the economy public. "
In her decision, Judge Therezinha Cazerta, the Federal Regional Court of the third region (TRF3), argued that it is not for the Justice to decide on the future of Embraer and overturned the injunction issued this week by Judge Victorio Giuzio Neto, of the 24th Federal Civil Court of Sao Paulo.
It was the second time in less than a month that magistrate Giuzio Neto suspended the agreement signed between the two aeronautical giants, which foresees the creation of a new civil aviation company in the South American country.
Under the agreement, Boeing will be the controlling company with 80% of the stake, while Embraer will keep the remaining 20% of the new company, which can be sold at any time to its partner through a put option.
The agreement needs the Government's endorsement, since it holds a "golden share" with the right of veto that was saved when in 1994 it privatized Embraer, which today is the third largest aircraft manufacturer in the world and a leader in the aircraft segment for regional flights.
The president-elect of Brazil, Jair Bolsonaro, who will take office on January 1, has already said that it is "favorable" to an agreement between Boeing and Embraer, because, in his opinion, if the Brazilian manufacturer continues "unmarried as it is, the tendency would be to disappear. "
With the green light from the Brazilian Government, the "strategic partnership" will be subject to the approval of the shareholders, of the regulatory authorities, as well as to "other conditions pertinent to the conclusion of a transaction of this kind", as set out in the agreement.
The new company is valued at some 5.26 billion dollars and, according to analysts, its creation can somehow offset the association between the Canadian company Bombardier and the European aeronautical giant Airbus.