October 27, 2014 / 9:23 AM / in 3 years

Saab finalizes $5.4 billion Brazil order for 36 fighter jets

STOCKHOLM (Reuters) - Swedish aerospace firm Saab SAABb.ST has finalised a $5.4 billion order to sell 36 fighter jets to Brazil, one of the most valuable defense contracts up for grabs in an emerging market.

A large sign with the Saab logo stands outside the main Saab factory in Trollhattan June 10, 2009. REUTERS/Bob Strong

Shares in Saab, which in December leapt by a third after it won the bidding, were up 4.5 percent on Monday to 190 crowns at 4:45 a.m. EDT.

Saab said in a statement the total order value for the NG Gripen jets, to be delivered between 2019 and 2024, was around 39.3 billion Swedish crowns ($5.4 billion).

The company in December 2013 won a long bidding war for the delivery of new fighter jets for the Brazilian air force against France’s Dassault Aviation SA AVMD.PA and Chicago-based Boeing Co BA.N.

“Since then all parties have negotiated to finalize a contract. Today’s announcement marks the successful conclusion of that process,” Saab said.

Saab said the deal was still pending export control-related authorizations and other conditions that it expected to be fulfilled in the first half of 2015.

Reporting by Anna Ringstrom; Editing by Mark Potter

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