Boeing Settles Deal Fallout With Embraer For $150M: Details
Portfolio Pulse from Lekha Gupta
Boeing has settled a dispute with Embraer by agreeing to pay $150 million, following the termination of a $4.2 billion deal in 2020. Embraer's shares fell 3.69% after the announcement. The company also recently secured a contract to sell aircraft to the Uruguayan Air Force.
September 16, 2024 | 5:54 pm
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NEUTRAL IMPACT
Boeing has agreed to pay $150 million to Embraer to settle a dispute over a terminated $4.2 billion deal. This settlement concludes the arbitration process between the two companies.
The settlement with Embraer resolves a legal dispute, which could be seen as a positive step for Boeing in clearing past issues. However, the financial impact of the $150 million payment may be viewed as a minor negative, resulting in a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
AdvisorShares Dorsey Wright ADR ETF, which includes exposure to Embraer, may be impacted by the 3.69% drop in Embraer's share price following the settlement with Boeing.
The drop in Embraer's share price could negatively affect the performance of the AADR ETF, which holds Embraer as part of its portfolio. The impact is likely to be moderate given the ETF's diversified holdings.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Clough Select Equity ETF, which includes exposure to Embraer, may be affected by the 3.69% decline in Embraer's share price after the Boeing settlement.
The decline in Embraer's share price could have a negative effect on the CBSE ETF, which includes Embraer in its portfolio. The impact is expected to be moderate due to the ETF's diversified nature.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Embraer's shares fell 3.69% after announcing a $150 million settlement with Boeing over a terminated $4.2 billion deal. The settlement concludes a pending arbitration related to the deal's termination.
The settlement with Boeing, which involves a significant amount of $150 million, is likely seen as a negative outcome for Embraer, leading to a drop in its share price. The market may perceive the settlement as a loss for Embraer, impacting investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100