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State Dept OKs $231M NATO Precision Guided Munitions Sale

JDAMThe State Department has approved NATO’s request to buy precision guided munitions and related support services from the U.S. for use in regional threat deterrence operations under a potential $231 million foreign military sales agreement.

Boeing (NYSE: BA) and Raytheon (NYSE: RTN) will be the primary contractors on the deal, the Defense Security Cooperation Agency said Thursday.

The transaction covers production of 2, 040 KMU-556 F/B, KMU-557 F/B and KMU-572 F/B Joint Direct Attack Munition guidance kits as well as various computer control groups for 1, 000-pound Enhanced Paveway II, GBU-49 and GBU-12 laser guided bombs.

NATO also ordered joint programmable fuzes, bomb fin assembly and airfoil groups for LGBs, detector sensing unit laser and proximity sensors,  Wireless Paveway Avionics Kit interfaces and electronic bomb fuzes.

The alliance will distribute the munitions to Belgium, Czech Republic, Denmark, Greece, Netherlands, Norway, Portugal and Spain as the countries’ lead buyer under the deal, according to DSCA.

DSCA said it notified Congress of the potential sale Tuesday.

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