Boeing has agreed to pay Embraer $150 million in compensation for withdrawing from a deal to acquire its civilian aircraft business in 2020, according to the Brazilian aircraft manufacturer. After protracted negotiations, Boeing abandoned its plans to purchase 80% of Embraer's civilian operations for $4.2 billion in April 2020, amidst the Covid-19 pandemic. Boeing claimed it had the right to terminate the acquisition as Embraer had failed to meet the required conditions. However, Embraer deemed the decision unlawful, accusing the US aviation giant of using misleading arguments as a pretext to avoid fulfilling its obligation to complete the transaction. The two companies ultimately reached a compensation agreement during arbitration proceedings.
"Under the agreement between the two parties, Boeing will pay $150 million to Embraer," the Brazilian manufacturer stated in a release posted on the stock exchange authority's website. Boeing, in a separate statement, expressed satisfaction with the conclusion of the arbitration proceedings with Embraer. The company, which has experienced significant turbulence, announced it is contemplating substantial spending reductions amid a factory worker strike in the northwestern United States.
