Britain, Saudi Arabia agree on pricing in Eurofighter jet deal

British defense contractor BAE Systems announced Wednesday that Britain and Saudi Arabia have agreed pricing terms related to the Eurofighter Typhoon jets, bringing the two countries one step closer to the completion of a multi-billion dollar arms sale deal. Both governments have now agreed price escalation terms relating to the Typhoon jets and the terms of the agreement are broadly consistent with the company's prior trading outlook for 2013, BAE Systems said in a statement. The document of understanding signed by both governments in 2005 included provision for the Typhoon aircraft acquisition by the latter to be at 2005 economic conditions. "Cash settlement is expected to follow this pricing agreement, commencing in the early part of 2014," the statement said. "This is an equitable outcome for all parties, I am pleased that we have been able to conclude this negotiation which builds on our long standing relationship with this much valued customer," said Ian King, chief executive of BAE Systems. BAE builds the Eurofighter Typhoon jet together with European aerospace giant Airbus and Italian defense contractor Finmeccanica. The Eurofighter Typhoon is among the world's most advanced swing-role combat aircrafts, offering agile performance, interoperability and flexibility.