Canadian Prime Minister Mark Carney has refrained from making a preliminary decision regarding a multi-billion dollar submarine contract for which Thyssenkrupp's defense subsidiary, TKMS, has submitted a bid. Carney stated on Friday that he would not answer questions regarding his preference "because we are in the final stages of this process," speaking during a meeting with Chancellor Friedrich Merz and Norwegian Prime Minister Jonas Gahr Støre in Bardufoss, Norway. He emphasized the need to be responsible with taxpayer money and to "build partnerships that bring broader industrial and economic benefits to all of us together." Consequently, a "very clear, consistent, transparent, open, and fair process" is required. This comes as Canada weighs a competing bid from South Korea's Hanwha Ocean, which also promises additional investments in Canada. Carney noted that Canada is in the "fortunate position" of being able to choose between several offers.

Merz, Støre, and Defense Minister Boris Pistorius campaigned vigorously for the German-Norwegian project to be awarded the contract. TKMS submitted its offer this week. Industry experts estimate the submarine order alone to be worth more than ten billion euros.

"This is also about building industrial, strategic, and security policy partnerships. When Norway and Germany cooperate on submarines and tanks, it also signifies very strong political integration between close and trusted allies," Støre emphasized. Chancellor Merz argued that it is vital for NATO partners—of which South Korea is not one—to order equipment collectively. "In my view, this is therefore extremely important."

"There are many arguments beyond the military-strategic and alliance-oriented ones that also play a role for Canada," Pistorius said. "I am absolutely convinced of the quality of the submarine." He added that a uniform submarine fleet in the Atlantic would offer enormous strategic advantages for NATO partners. A decision is expected by mid-year.

(Report by Andreas Rinke; edited by Christian Rüttger. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)