The naval division of ThyssenKrupp, ThyssenKrupp Marine Systems (TKMS), has registered a strong advance on the Frankfurt Stock Exchange, with an increase of close to 11%, after information emerged suggesting that the Government of Canada would have opted for the German group for a contract to build twelve submarines valued at at least 12 billion dollars (about 10.5 billion euros).
At the close of the session, TKMS shares stood at 93.80 euros, compared to 83.70 euros the previous day, representing a rebound of 10.7% in a single session.
The Canadian newspaper "The Globe and Mail" has broken the news, citing several sources familiar with the negotiations, and it is expected that Canadian Prime Minister Mark Carney will make the awarding of the contract official this Monday.
The choice comes after a prolonged struggle between Germany and South Korea, represented by the company Hanwha Ocean, to secure this important defense agreement, and it also comes just days before the NATO summit in Ankara, which Carney himself will attend. With this move, Canada opts to strengthen cooperation with a NATO partner over the South Korean alternative.
The agreement not only includes the manufacture of the twelve submarines but also a comprehensive maintenance program for several decades, which could raise the total value of the operation to 70 billion dollars (about 62 billion euros), according to various estimates.
With this future fleet, Canada intends to modernize its naval capabilities and strengthen surveillance of its extensive coastlines, especially in the Arctic region. The Canadian Government and TKMS will still need to finalize numerous details of the contract, a process that could take years until its complete execution.