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The U.S. State Department has approved the potential sale of a sonar system and related equipment to Australia in a deal valued at up to $207 million, the Pentagon said on Thursday.

The Pentagon said Lockheed Martin(LMT.N) was the prime contractor for the Surveillance Towed Array Sensor System Expeditionary mission systems for Vessels of Opportunity.

"The proposed sale will improve Australia’s capability to meet current and future maritime threats by providing tactical platforms with the detection and cueing of enemy submarines," the Pentagon said. (Reuters)