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Brazil's govt joins Embraer in challenging injunction of tie-up with Boeing

Reuters  |  SAO PAULO 

(Reuters) - said on Friday that it would appeal an injunction issued Thursday blocking a proposed tie-up between planemakers and , joining Embraer, which has also said it will challenge the decision.

The will appeal through its

announced in July its intention to sell 80 percent of its commercial business to for $3.8 billion. has said the deal is crucial for its survival.

Meanwhile, Boeing's takeover is widely seen as a response to a similar deal earlier this year, in which took a controlling stake in the commercial segment of Canada's , which used to directly compete with Embraer.

The Embraer deal has stalled since July partly because the Brazilian government, which has veto power over any significant business decisions, has been reluctant to approve it.

Embraer needs government approval, a remnant of when the company was state-owned before its privatization in the 1990s, before it can formally present the deal with to its shareholders.

(Reporting by Marcelo Rochabrun; Editing by and Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 07 2018. 22:42 IST
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