The payment is the result of an arbitration process initiated after Boeing withdrew from the purchase of Embraer’s commercial jet division in a $4.2 billion deal.
Embraer reported on Monday (16) that Boeing will pay 150 million dollars to the company after the conclusion of an arbitration process between the two aircraft manufacturers, according to a relevant statement.
The agreement ends a process that began after Boeing gave up, in 2020, on acquiring Embraer’s main division, commercial jets, in a deal valued at US$4.2 billion.
At the time, Boeing claimed that Embraer had failed to meet certain requirements necessary to finalize the deal, while the Brazilian manufacturer claimed that Boeing’s withdrawal was due to broader financial issues. This impasse triggered the arbitration process.
Embraer did not say when the payment will be made.
In a statement, Boeing said it was “pleased” to have concluded the arbitration process with Embraer.
“More broadly, we are proud of our more than 90 years of partnership with Brazil and look forward to continuing to contribute to the Brazilian aerospace industry,” the company added.
At B3, at around 11 am, Embraer shares fell 4.43%, trading at 49.63 reais. In the year to date, however, the company still records an appreciation of over 120%.
Analysts Victor Mizusaki and Andre Ferreira, from Bradesco BBI, stated that the amount was below market expectations, which were US$300 million. According to them, the net amount that Embraer should receive will be around US$85 million, after adjustments for PIS/Cofins (9.25%) and income tax (34%).
With information from Reuters*
Source: https://www.ocafezinho.com/2024/09/16/apos-impasse-boeing-concorda-em-pagar-us-150-milhoes-a-embraer/
