America and Canada Should Build a New Warship -- Together
Canada is shopping for new frigates. The U.S. Navy just announced a frigate tender of its own. Could both of these deals be made better together?
Just up north of our border, Canada's navy is rusting. In March, the Royal Canadian Navy decommissioned its last operational guided missile destroyer (HMCS Athabaskan), leaving it with a fleet of just 12 frigate-class warships to defend its arctic territories. Worse, the youngest of these warships are more than 20 years old.
Canada's defense ministry announced in 2014 a tender offer to build a fleet of up to 15 shiny new frigates, and a potential $47.3 billion cash prize for the contract's winner. As it so happens, at the same time, the U.S. Navy is also looking to commission a new fleet of frigates -- as many as 20 ships -- but we'll be spending only $950 million apiece.
Source: Fool.com
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