SAO PAULO, Sept 16 (Reuters) - Boeing ( BA ) will pay

Embraer ( ERJ ) a gross amount of $150 million over its

decision to walk away from talks for a commercial aviation

tie-up in 2020, the Brazilian planemaker said on Monday.

The deal marks the completion of a lengthy arbitration

process that begun after the U.S. company aborted a $4.2 billion

agreement to buy Embraer's ( ERJ ) commercial jet-making operations in

the midst of the COVID-19 pandemic.

Boeing ( BA ) at the time accused Embraer ( ERJ ) of failing to meet

conditions for

closing the transaction

first aired in 2018, but Embraer ( ERJ ) said Boeing ( BA ) had torpedoed

it because of wider financial problems, triggering the

arbitration process.

A "collar agreement" was recently sealed by the parties

after the arbitration, Embraer ( ERJ ) said in a securities filing.

Boeing ( BA ) in a separate statement confirmed an agreement had

been reached, without mentioning the amount to be paid.

"We're pleased to have concluded the arbitration process

with Embraer ( ERJ )," it said. "More broadly, we are proud of our more

than 90 years of partnership with Brazil and look forward to

continuing to contribute to the aerospace industry in Brazil."