Germany’s legislative committees are preparing to approve a huge defense deal valued at around 12 billion euros, which includes the purchase of up to eight specialized anti-submarine frigates from TKMS AG & Co. KGaA, in one of the largest arms deals that Chancellor Friedrich Merz’s government is pursuing during the current year, according to Bloomberg.

The Defense and Budget Committees of the Bundestag (German House of Representatives) are expected to give final approval to the contract during closed meetings next week, according to representatives familiar with the progress of the legislative procedures.

This deal falls within a German plan to enhance its anti-submarine capabilities in northern Europe by 2029, in light of the United States’ tendency to redistribute part of its military assets away from Europe towards the Indian and Pacific Oceans region, in the context of confronting the rise of Chinese influence.

According to a confidential purchase document seen by Bloomberg, the German Ministry of Defense is planning to purchase four Meko A-200 frigates from the company TKMS, after canceling the F-126 project, which was being implemented in cooperation with the Dutch Damen Shipyards Group, and with the participation of the naval shipbuilding unit of Rheinmetall NVL.

The decision to cancel the F-126 project came after long delays and problems in implementation. This prompted the government to re-evaluate the timetable and resort to an alternative option that is more ready in terms of delivery.

The document indicates that the first 4 Miko A-200 frigates will cost about 6.6 billion euros, while the cost of 4 additional frigates will reach about 5.3 billion euros, bringing the total value of the contract to approximately 12 billion euros.

By comparison, previous estimates for the canceled F-126 project had reached up to 18 billion euros; Which makes the new deal less expensive than the previous project that was abandoned.

According to the timetable contained in the procurement document, the first 4 ships are scheduled to be delivered in December 2029, then in September 2030, then June 2031, and finally March 2032, which was considered one of the main reasons behind the German government’s decision to end the F126 project due to the years-long delay.

The deal includes a long list of subcontracting companies, while the document indicates that the list does not include the German company “Hensold” or the French company “Thales”, although they were expected to participate in the radar systems and combat management system within the previous “F-126” project.

According to informed sources, the “Miko A-200” frigates will rely on a Swedish radar, in addition to a combat management system made in North America, instead of the systems that were planned in the previous project.