Brazil court overrules injunction on Boeing-Embraer tie-up

A Brazilian court on Saturday shot down a fresh injunction by a judge over a plan by planemakers Boeing of the US and Embraer of Brazil to create a USD 5.26-billion joint venture, Brazil's state news agency said.

It was the second time this month an appeals court has overruled decisions by a Sao Paulo judge, Victorio Guizio Neto, seeking to temporarily block the deal.

The higher court said Saturday it was not up to Guizio Neto to decide the future of the proposed joint venture, noting that the Brazilian government held a "golden share" in Embraer that allowed it to veto strategic decisions if it wished, according to state news agency Agencia Brasil.

Embraer, the third-largest aircraft manufacturer in the world, was founded as a state group in 1969 before being privatised in 1994, though with Brasilia retaining the "golden share."