Global defense, aerospace and security company BAE Systems Plc forecasted more than a 10% increase in its earnings this year once it completes a multi-billion dealer with Saudi Arabia. BAE Systems, Britain's largest defense contractor and Saudi Arabia are currently negotiating the price of 72 Eurofighter Typhoon jets that the latter ordered. The transaction, dubbed as the Salam deal, was inked in 2007. Back then, the jets were worth GBP 4.5 billion or USD 6.8 billion. BAE Systems Chief Executive Ian King said that they expect the Salam deal to be completed in the second half of the year. King also revealed that the Saudi airforce could order more planes but they still need to finalize the price of the first batch before any new orders will be entertained.
Follow-on support for the Salam deal was given in June when BAE Systems inked another GBP 1.8 billion contract with Saudi Arabia. Analysts at the brokerage firm Jefferies said that the Salam deal is as good as done.
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