$37bn deal for Lock­heed

The Star Early Edition - - BUSINESS REPORT / INTERNATIONAL -

US WEAPONS maker Lock­heed Martin is in the fi­nal stages of ne­go­ti­at­ing a deal worth more than $37 bil­lion (R472.5bn) to sell a record 440 F-35 fighter jets to a group of 11 na­tions in­clud­ing the US, two peo­ple fa­mil­iar with the talks said. This would be the big­gest deal yet for the stealthy F-35 jet as it is set to make its Paris Air­show de­but this week. The sale rep­re­sents a ma­jor shift in sales prac­tices from an­nual pur­chases to more eco­nomic multi-year deals that lower the cost of each jet. The pric­ing of the jets was still not fi­nal, though the av­er­age price of the 440 jets was ex­pected to be $85 mil­lion, the peo­ple said on con­di­tion of anonymity be­cause they were not au­tho­rised to dis­cuss the ne­go­ti­a­tions pub­licly. The multi-year deal will con­sist of three tranches over fis­cal years 2018-2020. – Reuters

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