Rolls-Royce has reached an agreement with authorities in the UK, U.S. and Brazil concerning ongoing probes into alleged incidents of bribery and corruption involving intermediaries in overseas markets. The UK’s Serious Fraud Office (SFO) has been investigating since 2012, but the incidents are believed to date back over decades.

The company says it has entered into Deferred Prosecution Agreements (DPA) with the SFO and the U.S. Department of Justice (DoJ) and a Leniency Agreement with Brazil's Ministério Público Federal (MPF).

Rolls-Royce explains that these are voluntary agreements, which result in the suspension of prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty. The agreements will result in the total payment of £671m, at current exchange rates.

CEO Warren East declared : "The behaviour uncovered in the course of the investigations by the Serious Fraud Office and other authorities is completely unacceptable and we apologise unreservedly for it. This was unworthy of everything which Rolls-Royce stands for, and that our people, customers, investors and partners rightly expect from us."

Under the terms of the DPA with the SFO, Rolls-Royce will pay £497m plus interest under a schedule lasting up to five years, plus a payment in respect of the SFO's costs. It has also agreed to make payments to the DoJ totalling $170m and to the MPF totalling $26m. As a result, total payment by Rolls-Royce in the first year of all three agreements is expected to be £293m.

Rolls-Royce reports its full year 2016 results on 14th February and says an appropriate update on the implications of these settlements will be provided at that time.

The company says it has taken decisive disciplinary action where the rules have been broken and no longer uses any of the intermediaries who have been implicated.