U.S. aerospace company Boeing Co. and Brazilian planemaker Embraer S.A. were hit with a second injunction halting the companies' proposed joint venture.
The new order, obtained by S&P Global Market Intelligence, was issued by the same Brazilian federal court judge who issued a similar injunction earlier this month, which was later overturned on appeal.
The latest ruling comes in a lawsuit filed by Embraer's union in Sao Jose dos Campos, where the aircraft maker is based.
"The brutal asymmetry in the shareholder structure of this venture prevents it from being carried out without compromising the survival of national interests," Judge Victorio Giuzio Neto wrote in his decision.
He added that the discussion "in Brazil would not even begin in the United States of America, that is, a possible acquisition from Embraer, even if restricted to a commercial' part of Boeing — which also produces pure military aircraft ... for it would be immediately vetoed."
The planemakers earlier this week agreed to the terms of the joint venture under which Boeing will buy an 80% stake in Embraer's commercial aircraft and services operations.
Giuzio Neto wrote that under the terms of the agreement Embraer's Administration Council "does not have the power to negotiate at the desired level ... because what will actually occur is a transfer of Embraer's equity."
"There is no way of not recognizing a 'break-up' of Embraer, separating a theoretical 'commercial part' and, therefore, without autonomous existence, to create a new company whose majority share capital would be held by Boeing, which would still have exclusivity in management and administrative decisions of this new company," the judge said.
Boeing declined to comment while Embraer did not immediately provide a comment, Reuters said.