BRASILIA – the Brazilian government today announced the selection of Sweden's Saab Gripen NG, edging out Boeing's F/A-18E/F Super Hornet and France's Dassault Aviation's Rafale.The valued of the deal is reported to be $4.5 billion, while the contending US offer $ 7.5 billion and the French $ 10 billion.

Celso Amorim Brazilian defense minister said: "The definition of the new aircraft was the subject of studies and weights that took into account three factors. "Performance, technology transfer and costs were analyzed, not only acquisition but also maintenance. The choice was based on the balance of these three factors."

Lieutenant General Air Juniti Saitoto the commander of the Brazilian Air Force, added: "When you finish the development phase we will have intellectual property on this plane, access to all."

Finalizing the contract is expected to take between 8 to 12 month for the acquisition of 36 Gripen NG fighter aircraft, and the first aircraft delivered in two years. The Saab Gripen NG fighters aircraft will replace the Dassault Mirage 2000, retiring later this month.

Saab's offer includes technology transfer, a financing package and long term bi-lateral collaboration between the Brazilian and Swedish Governments, according to the aircraft maker.

Boeing opened offices in São Paulo and Brasília and appointed Donna Jean Hrinak as president of Boeing Brazil in 2011. Hrinak served as U.S. Ambassador to Brazil (2002–4), Venezuela (2000–2), Bolivia (1997–2000), and the Dominican Republic (1994–97).

France's Dassault Aviation put together Rafale International Consortium with Snecma (Safran Group) and Thales and had the full backing of the French government.

Håkan Buskhe chief executive officer of Saab, said: ”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.

"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”,

In a statement, Boeing called Brazil's decision "disappointing" and added will not diminish the aircraft maker's ongoing commitment to its presence, partnerships and support Brazil’s security needs.

Dassault Aviation stated: "We regret that the choice has gone in favor of the Gripen, an aircraft provided with many items of equipment of third party origin, especially U.S., and that does not belong to the same category as the Rafale.

"The Gripen is a lighter, single engine aircraft that does not match the Rafale in terms of performance and therefore does not carry the same price tag. This financial rationale fails to take into account either the Rafale's cost-effectiveness or the level of technology offered."