The U.S. government is in talks with Saudi Arabia regarding the latter’s proposed $1 billion purchase of two frigates from Lockheed Martin (NYSE: LMT) as part of the Saudi navy’s modernization efforts, Reuters reported Wednesday.Andrea Shalal writes that the discussions are in the advanced stage and could result in an agreement by the end of the year.
The report said the Saudi Naval Expansion Program II seeks to build up the country’s patrolling capability in the Persian Gulf and includes the acquisition of the additional warships, infrastructure, training services and anti-submarine warfare equipment.
Beyond the modernization program, a separate $1.9 billion deal for Saudi Arabia’s planned purchase of 10 Sikorsky Aircraft MH-60R helicopters is also in the pipeline, Shalal reports.
