- Canada will announce that Lockheed Martin Corp (NYSE:LMT) is the preferred bidder to supply 88 new fighter jets, a clear sign the U.S. company is set to win the multibillion-dollar contract, reported Reuters.
- The move suggests that Canada is under pressure to boost defense spending as the war in Ukraine rages.
- The report noted that the federal government of Prime Minister Justin Trudeau will now only hold detailed talks with the U.S. company. Ottawa hopes to award the contract this year and take delivery of the first jets in 2025.
- The contract could be worth up to C$19 billion ($15.10 billion), the report added. The former Conservative administration has decided to buy 65 F-35 jets in 2010 but later scrapped the decision.
- If the negotiations fail, the government will turn to the other contender Sweden's Saab AB (OTC:SAABF).
- Price Action: LMT shares are trading lower by 1.26% at $447.92 and SAABF higher by 1.10% at $37.80 on the last check Monday.
