The State DepartmentÂ has approved Saudi Arabia’s request to purchase $1.15 billion in General Dynamics-built (NYSE: GD) Abrams battle tanks along with a suite of ground vehicle recovery systems from the U.S. government under a foreign military sales agreement between both countries.
Twenty of theÂ total 153 M1A2S Abrams tanks covered under the sale are intended as battle damage replacements and the transaction also includes 20 of the BAE Systems-builtÂ M88Al/A2 Heavy Equipment Recovery Combat Utility Lift Evacuation SystemÂ Armored Recovery Vehicle structures, the Defense Security Cooperation Agency said Tuesday.
DSCA, the military agency responsible forÂ foreign military sales agreements, said General Dynamics will act as principal contractor for the sale that also aims to facilitate greater interoperability between the U.S. and Saudi armies and support a regional partner of the United States.
The sale also includes associated equipment such as machine guns, smoke grenade launchers, ammunition and night vision devices; as well as services for logistics, Â overhaul, conversion, refurbishment, testing and engineering functions.
Congress has 90 days to reviewÂ all foreign military sales transactions.