BAE shares take off on new Typhoon price deal
BAE Systems has said today that it’s confirmed a pricing escalation for the massive deal to supply Eurofighter Typhoon jets to Saudi Arabia.
The news, which erases some of the uncertainty hanging over the company, has seen shares climb almost two per cent this morning.
The so-called Salam deal, has been in the ether for years, but beset by problems.
Saudi had already agreed to buying 72 fighters, but upgraded aircraft and support have meant “fairly intense discussions” when it came to settling on a new price, BAE Systems chief executive Ian King has said.
King said today: "This is an equitable outcome for all parties, I am pleased that we have been able to conclude this negotiation which builds on our long standing relationship with this much valued customer".
Britain’s biggest engineering company said that the new prices are “broadly consistent” with its 2013 trading outlook.