India, July 7 -- The Canadian government on Monday announced it has selected German naval titan ThyssenKrupp Marine Systems (TKMS) to build a new fleet of up to 12 advanced submarines, initiating a monumental defence procurement program that represents a generational shift toward European military cooperation.

The decision, unveiled by Prime Minister Mark Carney in the maritime hub of Halifax, positions the German-owned shipbuilder and its joint bidding partner, Norway, to secure a lifecycle contract projected to eclipse 100 billion Canadian dollars ($73 billion) over the next several decades.

By designating TKMS as the preferred supplier, Ottawa successfully passed over an aggressively pitched rival bid from South Korea's Hanwha Ocean,...