A left-wing political party on Wednesday, October 16, filed a lawsuit to block the sale of 80% of Brazilian plane maker Embraer’s commercial jet division to Boeing for US$4.2 billion, arguing it will harm Brazil’s sovereignty.
According to Reuters, the deal, which would position Boeing to compete more directly with Airbus SE in the market for mid-sized passenger planes, has faced significant left-wing opposition largely because Embraer is seen as a strategic company for Brazil’s national security.
So far, a handful of lower court decisions temporarily blocking the deal have been overturned by appeals court judges. The government has authorized the deal and Embraer’s shareholders are for it.
But the latest lawsuit, filed by Brazil’s Democratic Labor Party (PDT), underscores that there is still a political risk that could potentially unravel the agreements reached so far between Boeing and Embraer. The PDT’s leader, Ciro Gomes, has staunchly opposed the sale of Embraer’s commercial jet division to Boeing.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.