CORRECTED-UPDATE 1-CAE nears deal to buy L3Harris's military training business for $1.05 bln -WSJ

(Corrects deal value to $1.05 billion, not $1.5 billion, in headline)

Feb 28 (Reuters) - Canada’s CAE Inc is nearing a deal to buy L3Harris Technologies Inc’s military training division for $1.05 billion, The Wall Street Journal reported on Sunday.

An agreement on the deal is expected on Monday, unless the talks fall apart, the newspaper said, citing people familiar with the matter.

Flight simulator maker CAE will fund the deal by a private placement of roughly C$700 million ($550 million) from two institutional investors, the report said.

Following the close of the deal, the military training division is expected to be based in Tampa, Florida, according to the newspaper.

CAE expects the deal to be accretive to earnings per share and forecasts annual cost savings of about C$35 million to C$45 million ($27.6 million to $35.4 million) in the second year following closing, the Journal added.

Florida-based L3Harris declined to comment when contacted by Reuters, while CAE did not immediately respond to a request for comment.

$1 = 1.2714 Canadian dollars $1 = 1.2700 Canadian dollars Reporting by Juby Babu in Bengaluru; Editing by Peter Cooney