France wins 'momentous' $40b submarine contract

Victory is a blow for Japanese govt's push to develop its defense export capabilities

France has beaten Japan and Germany to win a $40 billion deal to build a fleet of 12 new submarines for Australia, one of the world's most lucrative defense contracts, Australian Prime Minister Malcolm Turnbull announced on Tuesday.

The victory for state-owned naval contractor DCNS Group underscored France's strengths in developing a compelling military-industrial bid and is a blow for Japanese Prime Minister Shinzo Abe's push to develop defense export capabilities as part of a more muscular security agenda.