May 30, 2016 / 7:37 AM / a year ago

Boeing set to win $2.9 billion contract from UK MoD: The Telegraph

(Reuters) - Boeing Co (BA.N) is set to win a 2-billion-pound ($2.92 billion) contract from the UK Ministry of Defence (MoD) for new Apache helicopters, The Telegraph reported.

The logo of Dow Jones Industrial Average stock market index listed company Boeing (BA) is seen in Los Angeles, California, United States, April 22, 2016. REUTERS/Lucy Nicholson

The MoD has decided to give Boeing a 50-aircraft contract, including servicing, and the announcement could come as early as July, the newspaper said. (bit.ly/1WU9wng)

Italian aerospace manufacturer Leonardo Finmeccanica SpA (LDOF.MI) had been a contender for the contract, the Telegraph said.

U.S. planemaker Boeing is offering the helicopters at a lower price by tacking them on to the end of a larger Apache order from the US military, the paper added.

The British government has committed to NATO’s defense spending pledge of 2 percent of GDP for the next five years, but the MoD will be under pressure to opt for the most cost effective option as it juggles spending on a number of big projects.

Boeing and the MoD could not be immediately reached for comment.

Reporting by Abinaya Vijayaraghavan in Bengaluru; Editing by Sunil Nair

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