Report: Saudi Arabia to Buy $7B in Precision-Guided Munitions From Raytheon, Boeing

Saudi Arabia will purchase precision-guided munitions from Boeing (NYSE: BA) and Raytheon (NYSE: RTN) under an agreement worth approximately $7 billion, Reuters reported Thursday.

Sources told Reuters the proposed deal was part of a potential $110 billion package of weapons sales agreements that President Donald Trump and Saudi King Salman bin Abd al-Aziz Al Saud signed in May.

“We do not comment to confirm or deny sales until they are formally notified to Congress,” an official with the State Department said.

A U.S. government official told Reuters the proposed agreement has a 10-year term and that actual transfers of precision-guided munitions to the Middle Eastern country could possibly take years.

The report noted that weapons sales to Saudi Arabia and other members of the Gulf Cooperation Council could face delay in Congress over civilian deaths in Yemen associated with the Saudi-led campaign.

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