The deal will see Kongsberg Gruppen supply military vehicles, weapons technology and help in the digitization of 490 armored vehicles.
On Tuesday, Kongsberg Gruppen, a Norwegian defense contractor disclosed it has signed a letter of intent to supply equipment for military vehicles worth $1.93 billion (15 billion Norwegian crowns) to Qatar in what is its largest deal to date.
Qatar has chosen Kongsberg Gruppen to supply weapons technology and to digitize systems of 490 armored vehicles, which will be produced by France’s Nexter.
Although Qatar’s deal with Nexter, which was announced in late 2017, as part of a major military procurement package, Kongsberg Gruppen role in the deal has previously not been disclosed.
It turns out the deal is part of a wider Kongsberg deal with Qatari over technology development programs within its maritime and defense industry. Kongsberg Gruppen said, it sees a “huge potential” for the existing as well as future deals with Qatar.
With the news reaching the market, Kongsberg Gruppen’s shares rose by 7% to touch its zenith of 185.6 Norwegian crowns.