Hanwha Group is seeking to acquire Austal USA, the U.S. division of Australian shipbuilding and defense company Austal, with an offer of up to $1.2 billion.
According to the industry source, Hanwha has offered between $1.05 billion and $1.2 billion, or up to KRW 1.7 trillion, to acquire 100% of the Austal USA business entity and its operating assets through Hanwha Defense USA.
The proposed acquisition follows Hanwha securing a 19.9% stake in Austal, making it the Australian company’s largest shareholder.
Austal USA operates shipyards in Mobile, Alabama, and San Diego, California. According to the source, the company accounts for a 40-60% share in U.S. Navy small water support ships and military support ships.
In 2024, Austal USA also signed a contract to build a production facility for modules used in U.S. nuclear-powered submarines, or SSNs. The project places the company within the U.S. nuclear submarine supply chain.
Separately, Hanwha Group is seeking to use Philly Shipyard as a base for the Korea-U.S. shipbuilding cooperation project MASGA as it pursues participation in the U.S. merchant and naval shipbuilding markets.
Austal USA builds small and medium-sized surface ships and military support ships at its U.S. facilities. The source states that an acquisition would provide Hanwha with a foundation for possible participation in future nuclear-powered submarine projects.
A Hanwha Group official said contributing to the reconstruction of the U.S. shipbuilding industry is a priority for the group and that it is examining various ways to expand its business base in the United States.
