BAE Wins $ 25.7 Billion Australian Frigate Contest

(Reuters) – BAE Systems PLC ( BAES.L ) won a US $ 35 billion (£ 19.66 billion) competition for the delivery of anti-submarine frigates the Australian Navy, announced the Australian government Thursday. The nine ships, designed by BAE and built by ASC Shipbuilding in Australia, are expected to support the country's maritime combat capabilities for decades to come, the Australian government said in a statement.

"The Hunter class will provide the Australian Defense Force with the highest levels of lethality and deterrence that our main surface fighters need in times of global uncertainty," she said. ships.

Australia is a US military ally and maintains tense political relations with China since Prime Minister Malcolm Turnbull cited Beijing's interference in domestic politics to justify new laws to prevent the interference of foreign governments.

Hunter class ships for Australia are based on the BAE Type 26 frigate that the company built for the British Navy.

BAE has defeated Italian Fincantieri SpA ( FCT.MI ) and Spain Navantia SA for the estimated contract. BAE declined to comment on Thursday.

According to British Prime Minister Theresa May, the agreement will strengthen Britain's export economy after the departure of the European Union, which has personally pleaded the cause of BAE with its Australian counterpart at the beginning of the year.

"We have always been clear: when leaving the EU, we have the opportunity to build our close relations with allies like Australia.This agreement is a perfect illustration that the government is doing just that" said May in a statement.

New Australian ships will enter service in the late 2020s replacing eight Anzac class frigates, in service since 1996.

Australia announced in October that its new frigates would be equipped with 39, a long-range missile defense systems to counter the threat of rogue countries.

The country has modernized its army in recent years by purchasing a fleet of new submarines and F-35 fighter aircraft.

Australia announced Tuesday that it would purchase six US aircraft piloted remotely by Triton to reinforce its maritime patrols.