Military analysts note that the expansion will allow Canada to deploy three operational submarines at any given time to defend its Arctic, Pacific, and Atlantic coastlines.
German officials emphasized that selecting the German-designed submarines would establish a deep, long-term strategic alliance between Canada and European partners.
A senior German government official stated on Monday that the decision creates a genuine transatlantic dimension ahead of the NATO summit, while shares in TKMS rose 2.7 percent following the reports.
The announcement establishes TKMS as the preferred bidder rather than concluding a finalized contract.
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Defence policy experts expect negotiations to continue for several years before a formal contract is officially signed between the Canadian government and the German shipbuilder.
