Swedish aerospace firm Saab has finalised one of the most valuable defence contracts in an emerging market confirming the sale of 36 fighter jets to Brazil for the value of $5.4 billion.
A statement from Saab confirmed that the total order value for the NG Gripen jets was around 39.3 billion Swedish Crowns ($5.4 billion) and are to be delivered between 2019 and 2024.
In December 2013, the company won a long bidding war against France’s Dassault Aviation SA and Chicago based Boeing Co for the delivery of new fighter jets for the Brazilian air force in collaboration with local aircraft maker Embraer.
“Since then all parties have negotiated to finalize a contract. Today’s announcement marks the successful conclusion of that process,” Saab said.
Embraer will have a leading role in the program and undertake an extensive share of work in the production and delivery of the planes.
“We see great opportunities to continue to work with Brazil and Embraer on different markets,” Chief Executive Håkan Buskhe told The Wall Street Journal.
Saab stated that this deal with an “emerging superpower” such as Brazil has dramatically increased Saab’s opportunity to do business worldwide, not least in South America.
Shares in Saab jumped on news of the deal to trade at their highest level in more than a month. At around 1200 GMT, they were up 4.2% at SEK189.50.