State Dept OKs $133M SM-3 Block IIA Missile Sale to Japan

The State Department has cleared Japan’s request to buy Standard Missile-3 Block IIA, related equipment and services from the U.S. government under a potential $133.3 million foreign military sales agreement.

Raytheon’s (NYSE: RTN) missile systems business and BAE Systems’ U.S. arm will serve as principal contractors for the proposed deal that covers four SM-3 Block IIA missiles and four MK 29 missile canisters, the Defense Security Cooperation Agency said Tuesday.

The proposed transaction also covers engineering, transportation, program, technical assistance and logistics support services as well as annual deployment of government and contractor personnel to Japan to provide oversight and perform technical assessments over a five-year period.

The FMS deal seeks to help the East Asian country build up its capability in ballistic missile defense in support of its national security efforts.

DSCA said it notified Congress of the proposed transaction Tuesday.

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