US threatens to stop big Gripen deal

  

Saab
Information: US wants to stop Gripen deal - Saab appears on the stock exchange

Erik Melin

Updated 13.01 | Published 09.35

The US does not want Gripen to be sold to Colombia and threatens with a veto.

Saab rejects the information.

– We are convinced that Gripen is the fighter aircraft that best meets Colombia's needs, says communications director Viktor Wallström.

        

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The US intends to try to stop Saab's sale of the Gripen fighter aircraft to Colombia, writes the spanish defense website Infodefensa.

The country will reportedly veto the sale, citing the fact that the Gripen is partly built with American components, such as the F414-G engine from General Electric.

According to Infodefensa, the American action is based on dissatisfaction with the Colombian procurement. They want Colombia to choose the American F-16 aircraft from Lockheed Martin instead.

A Swedish JAS 39C Gripen. Archive photo. Photo: Johan Nilsson/TT

Risk of losing out on 21 billion

If the American veto were to pass, it would mean that the deal between Saab and the Colombian defense cannot go through. It would mean a major blow to the Swedish defense industry company.

According to Infodefensa, the purchase involves ten Gripen aircraft worth 2 billion dollars, equivalent to 21.2 billion kronor. However, there are no official details about the deal, which has not yet been finalized.

The American bid has been rejected by Colombia because it was considered too expensive. Above all, it is the infrastructure around the American F-16 that is considered significantly more expensive than the equipment around the Gripen.

Saab's response: Not correct

Richard Smith, Marketing and Sales Manager for Gripen at Saab, writes on Platform X that the information in the Spanish newspaper is not correct.

"This misleads the reader" and "all relevant licenses and permits are in place," he writes, adding that the Gripen E is the perfect choice for Colombia.

According to Viktor Wallström, Saab's Head of Communications and Sustainability, it is normal for procurements of fighter aircraft to be surrounded by rumors.

- We currently have no indications that the information that is now circulating in the media is correct, and therefore have no reason to speculate further about it. We have a good relationship with our American suppliers and our offer for Gripen to Colombia remains, says Viktor Wallström in a statement.

Share price drop after rocket development

The information caused Saab's share to plunge on the stock market on Wednesday morning. An hour after opening, the price had fallen by 3.6 percent.

However, the development can be seen in the light of the fact that the Saab share has been going like a train since Russia began its war of invasion against Ukraine. From February 2022 to today, the share has increased by around 350 percent.

Recently, Saab, together with many other listed companies in the defense industry, has seen a positive price trend. This is explained by the prospects for a possible peace in Ukraine and expectations of heavy defense investments in Europe in the future.

By lunchtime, the share had recovered somewhat and was then at minus 1.21 percent.