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LONDON, UK / ACCESSWIRE / November 22, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Raytheon Co. (NYSE: RTN), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=RTN. The US State Department on November 17, 2017, approved the possible sale of Raytheon's Patriot Missile Defense System to Poland. The Defense Security Cooperation Agency (DSCA), Pentagon's arm that implements foreign arms sales made the announcement. The approval is based on the Government of Poland's request to purchase certain Defence systems from the US. The approval involves the possible sale of Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS) - enabled Patriot Configuration-3+ with Modernized Sensors and Components. The estimated value of the deal is $10.5 billion. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Discover more of our free reports coverage from other companies within the Aerospace/Defense Products & Services industry. Pro-TD has currently selected Orbital ATK, Inc. (NYSE: OA) for due-diligence and potential coverage as the Company reported on November 02, 2017, its financial results for Q3 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Orbital ATK when we publish it.

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Purchase Request from Poland

The Government of Poland's Defence systems purchase program is in two phases. In the first phase it has requested the purchase of an Integrated Air and Missile Defense (IAMD) Battle Command System (IBCS)-enabled Patriot Configuration-3+ with Modernized Sensors and Components. The purchase request also included four AN/MPQ-65 radar sets, which can track and engage more than 100 potential targets at a range of over 100 kilometers, four engagement control stations, mobile units that control the entire Patriot system. 16 M903 launching stations that can transport, aim and launch the missiles, as well as two hundred and eight Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement missiles. The purchase agreement includes additional related equipment, training, technical support and spare parts.

Three different Defence contractors will be involved in this deal - Northrop Grumman Corp. (NYSE: NOC) developed IBCS; Raytheon-built Patriot launchers; and Lockheed Martin (NYSE: LMT) manufactured PAC-3 missiles, while the AN/MPQ-65 radar is manufactured by both Raytheon and Lockheed Martin.

The sale would require approximately 42 representatives from the US government and 55 contractors to travel to Poland for "an extended period" for testing, training, and technical support.

Poland has also requested for offsets to the purchases. DSCA has clarified that the offsets will be finalized only during the negotiations between Poland and contractors.

About Raytheon's Patriot Missile system

The Patriot system is a long-range missile defense system designed to protect against aircraft, drones, and ballistic or cruise missiles. It can detect, track, and engage UAVs (unmanned aerial vehicles), cruise missiles, and short-range or tactical ballistic missiles. Since January of 2015, Patriot has intercepted more than 100 ballistic missiles in combat operations around the world. According to Raytheon this was possible because Patriot is built on a foundation of more than 3,000 ground tests and over 1,400 flight tests.

Background

In March 2017, Poland had said that it was expecting to sign a deal with Raytheon valued $7.6 billion to acquire eight Patriot missile defense systems by the end of 2017. During President Donald Trump's visit to Poland's Warsaw in July 2017, Poland had signed a memorandum with US to purchase Patriot missile defense systems. Poland is a NATO ally and one of the eastern European nations that share a border with Russia. The deal is part of Poland's plan for modernization of its armed forces by 2023. Poland has a current defense budget of 2% of its GDP which will rise to 2.5% of its GDP by 2030.

Poland has had to increase its military strength in the face of Russia's aggression after the annexation of Crimea from Ukraine in 2014. In October 2016, Russia had deployed nuclear-capable Iskander missiles into Kaliningrad enclave which borders Poland and Lithuania. This had raised security concerns amongst NATO allies.

If the sale goes through, Poland will become one of the few European countries to own the Patriot air-defense system. Other European countries that own the Patriot air-defense system are Netherlands, Germany, Spain, and Greece.

Sale supports US NATO policy

The proposed sale supports US foreign policy and national security objectives of improving the security of a NATO ally. DSCA believes that the potential sale would help make Europe more secure. It has also confirmed that the sale of these missiles would not alter the basic military balance in the region.

The contract must be approved by the US Congress and requires special permission. DSCA has already notified the US Congress about the possible sale on November 14, 2017. The US lawmakers have 30 days to block the sale, but this happens on very rare occasions.

DSCA has clarified that this is a notice of potential sale and does not imply that the sale has been completed.

About Raytheon Company

Waltham, Massachusetts based Raytheon was founded in 1922 and is a technology and innovation leader specializing in defense, civil government, and cybersecurity solutions. Raytheon provides state-of-the-art electronics, mission systems integration, capabilities in C5I (command, control, communications, computing, cyber and intelligence), sensing, effects, and mission support services.

The Company has a global employee strength of over 63,000 people. Raytheon's sales for FY16 was $24 billion.

Last Close Stock Review

Raytheon's share price finished yesterday's trading session at $186.59, advancing 1.47%. A total volume of 1.30 million shares have exchanged hands, which was higher than the 3-month average volume of 1.29 million shares. The Company's stock price surged 4.71% in the last three months, 15.08% in the past six months, and 27.71% in the previous twelve months. Additionally, the stock rallied 31.40% since the start of the year. Shares of the Company have a PE ratio of 25.12 and have a dividend yield of 1.71%. The stock currently has a market cap of $54.36 billion.

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