Boeing To Pay $150 Million To Embraer After Failed JV

(RTTNews) - Embraer S.A. (ERJ) and Boeing Co. (BA) reached an agreement after a long arbitration process that started after Boeing aborted a $4.2 billion agreement to buy Embraer's commercial jet-making operations in the midst of the COVID-19 pandemic.

According to Embraer, Boeing agreed to pay $150 million for having abandoned the deal.

Boeing at the time accused Embraer of failing to meet conditions for closing the transaction.

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.

"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."