Post by account_disabled on Mar 13, 2024 22:43:55 GMT -5
The Federal Attorney General's Office asked the Federal Regional Court of the 3rd Region, this Friday (7/12), to suspend the injunction that prohibits the progress of the merger process between the airlines Embaer and Boeing.
In the request, the AGU warns that the decision violates the separation of powers and the political-administrative order, as it prevents the Union from deciding at the appropriate time, that is, if and when the negotiations between the two companies are concluded, if approval for the business.
“The veto power is due to the so-called “golden share” – preferential share that the public entity maintained in Embraer during the company's privatization process”, states the document.
Also according to the AGU, Embraer's Board of Directors “could never carry out the transfer of the company's commercial aviation business” to Boeing alone.
“The Council's deliberation is only the first decision-making stage in the process of approving the operation, which will necessarily still go through the scrutiny and veto power of the Union, the Embraer General Assembly and the competent national and international regulatory authorities. This decision-making process will take months to complete”, adds the AGU.
Atypical Commercial Operation
Judge Victorio Giuzio Neto suspended the merger, this B2B Lead Wednesday (5/12), when analyzing a popular action presented by federal deputies Paulo Pimenta (PT-RS) and Carlos Zaratini (PT-SP). In the decision, the federal judge argues that the case is not a typical Embraer commercial operation, but a potential operation in which the Union will not retain its "golden share", an action that guarantees it veto power over the company's strategic decisions. .
“The measure was also necessary due to the proximity of the Judiciary recess and the inauguration of President-elect Jair Bolsonaro, scheduled for January 1st,” he said.
In his decision, the judge stated that he understands that he is not causing a “serious injury to the economy and public order” and recalled the proximity of the inauguration of president-elect Jair Bolsonaro, with changes to government teams and extensive renewal of the legislature.
Therefore, it is “recommended”, according to the judge, to prevent any concrete acts from taking place during this period “creating a factual situation that is difficult or impossible to reverse through the implementation of the 'segregation' of part of Embraer and its transfer to Boeing by through a simple decision by the first council.”
The agreement
The agreement, signed in July, aims to form a "joint venture", a new company in the area of commercial aviation, with the civil activities of the Brazilian company, valued at US$4.75 billion. In practice, the American company buys 80% of Embraer's commercial aviation and will pay US$3.8 billion for the business.