Boeing to pay Embraer $150 million for withdrawal from tie-up talks

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2 years ago

Boeing will pay Embraer a gross amount of $150 million over its decision to walk away from talks for a commercial aviation tie-up in 2020, the Brazilian planemaker said on Monday.

The deal marks the completion of a lengthy arbitration process that began after the U.S. company aborted a $4.2 billion agreement to buy Embraer’s commercial jet-making operations in the middle of the COVID-19 pandemic.

Boeing 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.

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A 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.”

With information from Reuters