The Brazilian Second Panel of the Federal Court of Appeals of the Third Region overturned an earlier injunction by a lower instance court temporarily blocking the establishment of a joint venture between Embraer and Boeing.

The Brazilian manufacturer said in a stock market filing that the injunction was overturned on December 10, 2018. It added that it "will keep its shareholders and the Market informed on any material developments related to the Class Action."

It is recalled that the Twenty-Fourth Federal Civil Court of São Paulo had earlier blocked the discussions on the establishment of the joint venture pending the formation of the new government in Brazil. On January 1, 2019, the new President Jair Bolsonaro, as well as the new Congress will take office.

A motion to block the establishment of the joint venture was filed by four deputies from the opposition Workers' Party.

The two manufacturers earlier said that they hoped to finalise all procedural aspects of the merger by the end of 2019. The proposed joint venture would be 80%-controlled by Boeing and would only include the civilian part of Embraer. The Brazilian government has a deciding vote on the establishment of the joint venture due to its golden share in Embraer.

Jair Bolsonaro said previously he favoured the deal in principle amid worries that the establishment of a joint venture might lead to the transfer of military secrets to the US.