Australia says it has accepted a Japanese company's bid for a lucrative and hotly contested contract to build Australian naval vessels, expected to be worth 10 billion Australian dollars ($6.5 billion

Japan has secured a landmark AU$10 billion (£4.9bn) agreement to build Australia's next generation of warships. It marks Tokyo 's most significant defence sale since ending a military export ban in 2014 and signalling a notable shift from its post-war pacifism.

Japan’s Mitsubishi Heavy Industries won a multi-billion dollar deal to build a fleet of advanced naval frigates for Australia, boosting Tokyo’s ambitions to become a major exporter of military equipment and develop its defense sector.