Canada has chosen Germany’s Thyssenkrupp Marine Systems over South Korea’s Hanwha Ocean to build 12 new submarines, Prime Minister Mark Carney announced Monday ahead of a NATO summit in Turkey. Calling it a difficult decision between two strong contenders, Carney noted that TKMS supplies submarines to more than one-third of NATO nations—an apparent factor in the selection. The procurement, the largest in Canadian history, reflects Ottawa’s push to strengthen defense ties with European allies and reduce dependence on the United States. Canada’s aging Victoria-class subs will be decommissioned within ten years. Exclusive negotiations with TKMS are expected to take roughly 18 months; if they collapse, Canada can still return to Hanwha.