SAABF - Why did Embraer's stock rise today? Stronger relationship with Saab

2023-04-11 17:51:23 ET

Embraer ( NYSE: ERJ ) on Tuesday rose 4.4% as the Brazilian aircraft maker said it deepened its collaboration with Saab ( OTCPK:SAABF ) ( OTCPK:SAABY ) on making military jets.

The joint effort includes provided Embraer's C-390 Millennium military transport plane to the Swedish air force, according to a statement . The companies will look for ways to integrate Saab equipment and systems into the C-390.

Embraer ( ERJ ) and Saab ( OTCPK:SAABF ) ( OTCPK:SAABY ) also plan to work together on sales of Saab's Gripen fighter jet in Brazil and Latin America. Brazil's government in 2014 agreed to buy 36 Gripens as part of an effort to modernize its fleet.

Brazil may expand that order to 40 aircraft, Reuters reported Tuesday, citing people familiar with the matter. The country may place a second order for another 30 Gripens to provide adequate air defenses for the entire country, the source said.

A Gripen E-series jet made for Brazil's air force flies over Rio de Janeiro (Photo: Saab)

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