Key facts
- Hanwha Group has offered to purchase Austal's U.S. operations for $1.05 billion to $1.20 billion.
- The acquisition aims to expand Hanwha's defense market presence in the United States.
- Austal's core operations in Australia, the Philippines, and Vietnam are not included in the offer.
- Austal has granted Hanwha a four-week period for due diligence.
- Austal's U.S. business is projected to incur an operating loss of A$175 million in the 2026 financial year.
Australian shipbuilder Austal announced on Tuesday that it has received an offer from South Korean conglomerate Hanwha Group to acquire its U.S. operations for up to $1.20 billion. The proposed deal is part of Hanwha's strategy to expand its presence in the American defense market, following its acquisition of Philly Shipyard in 2024.
Hanwha Defence USA has offered a price range of $1.05 billion to $1.20 billion for Austal's U.S. entities. James Hewitt, a spokesman for Hanwha Defense USA, stated that the company prioritizes contributing to the revitalization of American shipbuilding and is exploring options to grow its U.S. footprint.
Austal, Australia's largest shipbuilder, designs and constructs vessels for the U.S. Navy and Coast Guard. Its U.S. business accounted for 90% of the group's pre-tax profit of A$108.5 million in the 2025 financial year. The offer specifically excludes Austal's core operations in Australia, the Philippines, and Vietnam, as well as its Sydney-listed shares and its Strategic Shipbuilding Agreement with the Australian government.
Austal has agreed to provide Hanwha with a four-week period for due diligence. Previously, in December, the Australian government approved Hanwha's proposal to increase its stake in Austal to 19.9% from 9.9%, subject to certain data access and security conditions. LSEG data indicates that an entity owned by Hanwha holds a 9.9% stake, while a private entity associated with billionaire Andrew Forrest holds 19.28%.
Austal anticipates its U.S. business will record an operating earnings loss of A$175 million in 2026, contributing to an expected group operating loss of A$113 million for the same year. This contrasts with the group's operating earnings of A$113.4 million in the prior year.