TKMS Shares Gain on Potential Canadian Submarine Order

By Sarah Sloat

Shares in TKMS rose after Canada chose the German naval ship and submarine builder as its preferred supplier for 12 conventional submarines.

TKMS shares traded 3.9% higher in early European trading at 96.90 euros, after jumping nearly 5% at the open. Analysts at Deutsche Bank and Mwb said the potential order would extend visibility for the company for years, if not decades.

Canadian Prime Minister Mark Carney said Monday that the purchase of the German-made submarines would be the largest military procurement in the country's history.

TKMS beat out a bid from South Korea's Hanwha Ocean. Canada has the right to opt for South Korean submarines if talks with TKMS fail, Carney said late Monday.

Write to Sarah Sloat at sarah.sloat@wsj.com