FX.co ★ Boeing To Pay $150 Million To Embraer After Failed JV

Embraer S.A. (ERJ) and Boeing Co. (BA) have resolved their dispute following an extended arbitration process initiated after Boeing withdrew from a $4.2 billion agreement to acquire Embraer's commercial jet-making division during the COVID-19 pandemic.

Embraer disclosed that Boeing has consented to pay $150 million for abandoning the transaction.

Previously, Boeing had alleged that Embraer did not satisfy certain conditions required to finalize the deal.

Following arbitration, the parties concluded a "collar agreement," as mentioned by Embraer in a securities filing.

In an independent statement, Boeing confirmed the settlement.

"We are pleased to have concluded the arbitration process with Embraer," Boeing stated. "More broadly, we are proud of our over 90-year partnership with Brazil and look forward to continuing our contributions to the aerospace industry in Brazil."