Australia is to buy a near-new surplus British navy amphibious landing ship at what appears a bargain $100 million pricetag.
Defence Minister Stephen Smith said Australia had been successful in its bid for RFA Largs Bay, a 16,000 tonne landing ship launched in 2003 and commissioned in 2006.
The ship is set to be decommissioned as a cost saving measure under the UK government's Strategic Defence and Security Review released last October.
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Mr Smith said Australia would pay 65 million pounds or $A100 million at the current exchange rate.
He said the book value was around 130 million pounds.
