State Department OKs Potential $3B Air-to-Air Missile Sale to Germany

The State Department has cleared a potential $2.90 billion foreign military sale of advanced medium-range air-to-air missiles manufactured by RTX (NYSE: RTX) to the government of Germany.

The potential FMS deal covers the provision of up to 969 AIM-120C-8 AMRAAM and 12 AMRAAM C8 guidance sections, the Defense Security Cooperation Agency said Wednesday.

Other items on the proposed sale include control sections, telemetry kit, captive air training missiles and missile containers, communications security devices, computer test set adapter groups, common munitions built-in-test reprogramming equipment and spare and repair parts.

Raytheon, one of the three core businesses under the new RTX, will be the principal contractor on the transaction, which does not require the deployment of contractor and government representatives to Germany.

The German air force will take in the system as part of efforts to boost interoperability with U.S. and allied forces.

DSCA does not expect the FMS proposal to affect the basic military balance in the region.