Saab Shares Gain as Brazil Outlines Plans to Order Further Gripen Fighter Jets

Dow Jones

2024-11-11

By Dominic Chopping

STOCKHOLM--Saab shares gained Monday after the Brazilian government outlined a plan to buy further Gripen fighter jets.

Brazil agreed to buy 36 of the aircraft under a deal signed 10 years ago and so far eight jets have been delivered under the contract.

Under a bilateral letter of intent signed by the Brazilian and Swedish defense ministers Saturday, Brazil plans to buy a further nine Gripen planes while Sweden aims to acquire Brazilian Embraer C-390 transport aircraft. No financial details of the deal were disclosed.

Shares rose as much as 4.7% in early European trade.

"On both sides, we stand ready to immediately task relevant authorities to initiate the necessary processes for the implementation of this letter of intent," Swedish defense minister Pal Jonson said in a post on X.

The number of new C-390s Sweden plans to buy wasn't disclosed, but the country has long been looking to replace its aging fleet of Lockheed Martin Hercules military transport aircraft.

"Now we are fully focused on getting this absolutely central capability in place as soon as possible," Swedish Air Force Chief Major General Jonas Wikman said in a statement.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 11, 2024 04:59 ET (09:59 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

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