Rolls-Royce has agreed to pay £671 million to British, US and Brazilian authorities to settle bribery and corruption claims.
The engine maker said it has in principle reached a deferred prosecution agreement (DPA) with the UK's Serious Fraud Office (SFO) and the US Department of Justice (DoJ), and a leniency agreement with Brazil's Ministerio Publico Federal (MPF).
The agreements relate to bribery and corruption scandals involving intermediaries in overseas markets such as Indonesia and China.
The company first passed information to the SFO in 2012 after facing "allegations of malpractice" in the two countries, after which the fraud squad launched a formal investigation.
Officials for the firm said at the time its own investigations had found "matters of concern" in additional overseas markets.
Rolls-Royce said the sums were "voluntary agreements" which result in the suspension of a prosecution, provided the company fulfils certain requirements, including the payment of a financial penalty.
The firm has agreed to make payments to the DoJ totalling 169 million US dollars (£140 million) and to the MPF totalling 25.6 million US dollars (£21.2 million).
Under the terms of the DPA with the SFO, Rolls-Royce will pay £497 million plus interest over five years, plus a payment in respect of the SFO's costs.
Rolls-Royce will pay £293 million in the first year of all three agreements.
The firm said it has co-operated fully with the authorities and will continue to do so.
Rolls-Royce will report full-year results in February, when it will update the market on the implications of the settlements to the balance sheet.
The firm said early indications show that the group has had a "good finish" to the year with both profit and, in particular, cash expected to come in ahead of expectations.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here