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Report: U.S. Signs $3.5B Lockheed Missile Interceptor Deal with UAE

The U.S. government will sell up to $3.49 billion of Lockheed Martin‘s (NYSE: LMT) newest missile interceptors to the United Arab Emirates, Bloomberg has learned.

The UAE would be the first international buyer of the Terminal High-Altitude Area Defense missile interceptor.

A U.S. government official told the publication that the contract has an initial installment worth around $1.96 billion. The contract is for 96 interceptors total.

When the deal was first proposed for congressional approval in September 2008, the Pentagon said the deal could be worth up to $6.95 billion, if all options were exercised.

The UAE initially planned to purchase 144 interceptors before scaling down its requirements in 2010. The country has also reduced an order from four to two Raytheon Co. (NYSE: RTN) AN/TPY-2 mobile search and tracking radar.

Raytheon manufactures the mission computer for THAAD. BAE Systems‘ U.S. subsidiary produces THAAD’s missile seeker.

Bloomberg’s government official source said the Pentagon may announce the contract as soon as next week.

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