Mexico’s president elect, set to take office Dec. 1, will reportedly cancel the country’s planned purchase of eight Sikorsky MH-60R helicopters from the U.S.

Andres Manuel Lopez Obrador told legislators Wednesday that he would cancel the contract for the Sikorsky-built utility helicopters as a part of sweeping cost-cutting measures, according to Reuters.

A U.S. Navy MH-60R Helicopter using an AN/AQS-22 Airborne Low Frequency Sonar (ALFS) system as an integrated dipping sonar system. Photo: Lockheed Martin.
A U.S. Navy MH-60R Helicopter using an AN/AQS-22 Airborne Low Frequency Sonar (ALFS) system as an integrated dipping sonar system. Photo: Lockheed Martin.

The $1.2 billion deal announced in April called for the aircraft to be equipped with T-700 GE 401-C engines, APS-153 multi-mode radars, airborne low frequency systems, AN/APX-123 identification friend or foe transponders, and AN/AAS-44C multi-spectral targeting systems forward-looking infrared systems. Mexico was to use them to modernize its armed forces and combat criminal activity.

The deal also includes 10 AGM-114 Hellfire missiles, five AGM-114 M36-E9 Captive Air Training missiles, four AGM-114Q Hellfire training missiles, 38 Advanced Precision Kill Weapons System II rockets, 30 MK-54 Lightweight Hybrid Torpedoes, 12 M-240D machine guns and 12 GAU-21 machine guns.

India is among the players looking at the Romeo model to upgrade their fleets for improved anti-submarine and surface warfare capabilities.

Sikorsky is a business unit within Lockheed Martin [LMT].