BRASILIA A Brazilian federal court on Thursday granted an injunction blocking the proposed tie-up between planemakers Boeing Co (N:BA) and Embraer SA (SA:EMBR3), according to a court document seen by Reuters.
The decision, which can be appealed, forbids Embraer's board of directors from signing the deal with Boeing. Boeing and Embraer did not immediately reply to requests for comment.
The legal action was brought by four congressmen with Brazil's leftwing Workers Party, which is opposed to the deal.
The companies announced in July that Brazilian planemaker Embraer would sell 80 percent of its commercial aviation business to Boeing.
But the deal has stalled, partly because the Brazilian government, which has the power to veto important decisions at the planemaker, has been reluctant to give it a greenlight.
President Michel Temer said he would leave the decision to the future administration, which takes office Jan. 1. President-elect Jair Bolsonaro has said he is in favor of the deal.