The conclusion of this lengthy arbitration process follows Boeing's cancellation of a $4.2 billion deal to acquire Embraer's commercial jet-making operations amidst the COVID-19 pandemic.

Embraer's shares on the Sao Paulo Stock Exchange dropped by 4.5% upon hearing the news, as some analysts believed that the final settlement amount was below expectations. However, despite this decline, Embraer's year-to-date shares have increased by 120% due to the positive demand for its aircraft.

JPMorgan analysts, led by Marcelo Motta, mentioned that the received cash was lower than both their expectations and the street's forecast. They had projected a cash inflow between $300 million and $400 million. Nonetheless, they acknowledged that this settlement will aid Embraer in reducing its debt and improving its financial position.

Boeing had initially accused Embraer of failing to meet the necessary conditions to finalize the transaction that was first proposed in 2018. However, Embraer argued that Boeing backed out due to broader financial issues. This disagreement led to an arbitration process being set in motion.

Following the arbitration, the two companies reached a "collar agreement," as disclosed by Embraer in a securities filing. Boeing confirmed the resolution in a separate statement but did not disclose the specific amount to be paid. They expressed satisfaction in concluding the arbitration process and emphasized their long-standing partnership with Brazil, stating their commitment to continue contributing to the aerospace industry in the country.

The settlement between Boeing and Embraer marks the end of an uncertain chapter in their attempted partnership. While the final amount may have fallen short of some expectations, it provides Embraer with a significant cash infusion and an opportunity to strengthen their operation. As both companies move forward, they will undoubtedly navigate their individual trajectories in the ever-evolving aviation landscape.