Street Insider:
The government of Romania signed an agreement to purchase Raytheon’s (NYSE: RTN) combat proven Patriot from the U.S. Army. The agreement, formally referred to as a Letter of Offer and Acceptance, paves the way for Romania’s Patriot force to rapidly reach Initial Operational Capability, and sets the stage for the U.S. government to begin contract negotiations with Raytheon.
Patriot is a purely defensive system that is the backbone of NATO’s defense against ballistic and cruise missiles, advanced aircraft and drones. Romania’s procurement of the system will help the country meet its NATO commitment to spend at least 2% of its Gross Domestic Product on defense.
“With its newly built Patriot capability, Romania’s military will have the ability to defend Romania and its NATO allies,” said Tom Laliberty, Raytheon vice president of Integrated Air and Missile Defense. “Patriot will also enable Romanian air defenders to train, exercise and interoperate with their U.S. and European counterparts.”
