BAE Systems (LSE:BA.) shares rose Monday after Norway selected the United Kingdom to supply new Type 26 frigates in what officials are calling the largest defense procurement in the country’s history.
Norwegian Prime Minister Jonas Gahr Støre announced the decision on Sunday, highlighting that the partnership with the UK offers the strongest foundation for achieving defense objectives approved by the Storting, Norway’s parliament. Deliveries of the frigates are expected to begin in 2030.
The decision follows months of evaluation, during which proposals from France, Germany, the United States, and the UK were assessed. Støre described the choice as challenging, noting that all four nations offered competitive bids, but the Chief of Defence recommended the UK, calling it a historic step in defense cooperation.
Under the agreement, both the British and Norwegian navies will acquire Type 26 frigates with matching technical specifications, allowing for joint operations, training, and maintenance. Norwegian Defense Minister Tore O. Sandvik said this compatibility will help lower costs and enable crew interchangeability between the two navies.
The vessels will carry anti-submarine helicopters, though the specific model has yet to be decided. Authorities are also reviewing options for unmanned systems. A binding intergovernmental agreement between Norway and the UK is expected soon, after which both governments will negotiate contracts with BAE Systems to finalize pricing and delivery timelines. Sandvik added that the Storting will later review and approve the investment decision.
The deal includes a commitment to industrial collaboration, with UK authorities guaranteeing cooperation with Norwegian industry equivalent to the contract’s full value. Støre emphasized that Norwegian companies will play a key role in the maintenance and upgrading of the ships, and both countries have identified potential areas for joint technological and industrial projects.
Officials stressed that the frigates are designed for submarine detection and combat. Each Type 26 vessel will displace 7,600 tons, measure 151.4 meters in length, reach speeds exceeding 26 knots, and cover a range of over 7,000 nautical miles. They will carry a crew of approximately 166, with room for up to 208 personnel, and include cargo space for unmanned vehicles.
Støre said the partnership will enhance NATO’s ability to monitor and secure northern maritime areas, underlining the importance of shared security interests with the UK.
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