Embraer disclosed it would receive $150 million from Boeing for an arbitration settlement connected to an uncompleted deal between the two companies.
Brazilian aerospace company Embraer disclosed the payment and the conclusion of pending arbitration proceedings between it and plane maker Boeing in a securities filing.
The deal marks the completion of a lengthy arbitration process that begun after the US company aborted a $4.2 billion agreement to buy Embraer’s commercial jet-making operations in the midst of the COVID-19 pandemic.
Boeing in 2020 dropped plans to take control of the jetliner business of Embraer. The company at the time said the two sides failed to agree to final terms by initial termination date and opted to walk away from the two planned joint ventures announced in 2018, which had been delayed by some competition regulators.
Boeing at the time accused Embraer of failing to meet conditions for closing the transaction first aired in 2018, but Embraer said Boeing had torpedoed it because of wider financial problems, triggering the arbitration process.
A “collar agreement” was recently sealed by the parties after the arbitration, Embraer said in a securities filing.
Boeing in a separate statement confirmed an agreement had been reached, without mentioning the amount to be paid.
“We’re pleased to have concluded the arbitration process with Embraer,” it said. “More broadly, we are proud of our more than 90 years of partnership with Brazil and look forward to continuing to contribute to the aerospace industry in Brazil.”
