Hanwha makes up to $1.2 bln bid for Austal's U.S. unit

South Korea's Hanwha Group has extended a preliminary, non-binding $1.2 billion offer to acquire the U.S. business of Australian defense shipbuilder Austal, according to a statement from Hanwha Defense USA. Any definitive deal would require successful due diligence, which would include a comprehensive review of Austal USA's operations and financials, as per James Hewitt, Hanwha's spokesman.

Austal confirmed the Hanwha Defense USA's offer, which falls between $1.05 billion and $1.2 billion. Austal, headquartered in Australia, is a prominent global defense shipbuilder with substantial U.S. operations and delivers vessels to the U.S. Navy. This acquisition is part of Hanwha's strategy to bolster its U.S. shipbuilding presence, following its recent purchase of Philly Shipyard in late 2024.

The bid comes as Hanwha has increased its stake in Austal to 19.9 percent, receiving approval from the Australian government for the expansion. Hanwha aims to significantly contribute to revitalizing American shipbuilding and is exploring multiple avenues to expand its footprint in the United States.