Germany is preparing to grant Saab (OTCPK:SAABF) (OTCPK:SAABY) and Northrop Grumman (NYSE:NOC) a €1.2 billion ($1.41 billion) contract to equip its Eurofighter jets with systems enabling them to deploy advanced anti-radar missiles against ground-based air defenses, Bloomberg News reported Monday.
The deal, which includes Saab’s Arexis sensor suite and Northrop’s AGM-88E missiles, is one of more than 80 procurement projects Defense Minister Boris Pistorius intends to submit for parliamentary approval before year-end. Other measures on the list include an order for 20 new Eurofighters and thousands of tanks and armored vehicles.
Companies such as BAE Systems (OTCPK:BAESF) (OTCPK:BAESY), Airbus (OTCPK:EADSF) (OTCPK:EADSY), Leonardo (OTCPK:FINMF) (OTCPK:FINMY), and German drone start-up Helsing are also cited in the government’s procurement documents. Lawmakers are expected to sign off on the spending package in early October.
The initiative could also lay the groundwork for closer defense ties between Berlin and Stockholm, particularly in developing a next-generation fighter to replace the Eurofighter fleet in the 2040s. Sweden’s involvement is being weighed as frustrations mount over the slow-moving Future Combat Air System (FCAS) program, where France’s Dassault Aviation has sought greater control despite German resistance.
The subject is expected to feature prominently in talks Tuesday between Swedish Defense Minister Pål Jonson and his German counterpart Pistorius in Berlin, with discussions focusing on joint procurement, defense contracts, and potential collaboration on future fighter aircraft.
Over the weekend, German Eurofighters were scrambled under NATO command to intercept a Russian surveillance aircraft flying over the Baltic Sea without a flight plan or radio contact, before Swedish jets took over escort duties.
Bloomberg News previously reported that Berlin is considering alternatives to Dassault if the FCAS program continues to stall, including the possibility of bringing in new partners such as Sweden or the U.K.