Brazil awarded a $4.5 billion contract to Swedish defense company Saab AB on Wednesday to replace its aging fleet of fighter jets, a surprise coup for the Swedish company after news of U.S. spying on Brazilians helped derail Boeing’s chances for the deal.



”The NSA problem ruined it for the Americans,” a Brazilian government source told Reuters on condition of anonymity.

Shares in Saab soared 27 per cent on Thursday.

The offer presented to the Brazilian Government by Saab includes Gripen NG, sub-systems for Gripen NG, an extensive technology transfer package, a financing package as well as long term bi-lateral collaboration between the Brazilian and Swedish Governments, the company said in a statement.

”I am extremely proud of the confidence that the Brazilian government has placed in Gripen NG. Saab regards the announcement today as a strong commitment of the Brazilian Government and we are looking forward to provide the Brazilian Air Force with the world-leading and most affordable fighter”, said Saab CEO Håkan Buskhe.

“Furthermore, this announcement is very significant for the collaboration between Brazil and Sweden. We stand prepared to start the industrial collaboration as planned, with its positive effects for Brazilian industry”.