Hanwha Group has moved to acquire Austal USA, the U.S. unit of Australian shipbuilder and defense firm Austal, in which the group is the largest shareholder. The move is seen as a strategy to secure a shipbuilding and maintenance base inside the United States — a key supplier to the U.S. Navy and Coast Guard — and to accelerate its push into the world's largest defense market.
Hanwha Aerospace (012450.KS) has submitted a proposal to acquire 100% of the corporate entity and operating assets of Austal USA, the company's U.S. shipbuilding division, for up to $1.2 billion (about 1.7 trillion won), according to Bloomberg and other outlets on the 11th.
Austal responded with a statement saying it would allow Hanwha (000880.KS) to conduct due diligence and finalize its acquisition proposal.
The deal is limited to the U.S. entity. Austal's core home-country operations in Australia, the Philippines and Vietnam are not included, and the Strategic Shipbuilding Agreement with the Australian government — which last year designated Austal as one of Australia's key defense shipbuilders — will remain in place, Bloomberg reported.
Hanwha attempted to acquire all of Austal in 2024 but failed. It later took a 19.9% stake last year to become the largest shareholder, and has now revised its strategy to acquire only the U.S. business as it renews its bid.
Austal, Australia's largest shipbuilder, currently has a market capitalization of about 1.6 billion Australian dollars (about 1.6 trillion won). If Hanwha succeeds in acquiring Austal USA, it is expected to secure its second production base in the United States after Philly Shipyard.
Austal USA is a large division that supplies ships to the U.S. Navy and Coast Guard. Headquartered in Mobile, Alabama, it operates a service center in San Diego and a technology center in Charlottesville, Virginia. About 80% of Austal's revenue comes from the United States, according to Bloomberg.
Separately, in an earnings outlook released the same day, Austal said its U.S. entity is expected to post a loss before interest and taxes of about 175 million Australian dollars in fiscal 2026, due to the fallout from existing long-term contract volumes.
