LONDON (Reuters) - Brit (LONDON:BRIT.L)ain's Ministry of Defence has awarded a 900 million pound contract to engineering firm Babcock (L:BAB) to help maintain, repair and store its army vehicles.
The 10-year contract has been awarded as part of the sale of its Defence Support Group (DSG) business to Babcock for 140 million pounds, which was announced last month.
The Ministry of Defence said on Tuesday that the contract will generate total savings to the army of around 500 million, representing a reduction of over a third of current costs.
(Reporting by Li-mei Hoang; editing by Sarah Young)