Hanwha is actively pursuing the acquisition of Austal's U.S. division, Austal USA, a move aimed at enhancing the competitiveness of its MASGA project.
Austal announced on August 11 that it received a non-binding conditional proposal from Hanwha Defense USA to acquire the business and operational organization of Austal USA. The proposed acquisition amount is reported to be between $1.05 billion and $1.2 billion, reflecting the valuation of Austal USA without cash or debt.
The scope of the acquisition is limited to the U.S. shipyard of Austal USA and does not include the publicly listed shares of the Australian headquarters or its core shipbuilding operations in Australia and Asia.
The Austal board has approved providing Hanwha with a four-week due diligence opportunity to develop a more specific and definitive proposal. However, the process still requires approval from the U.S. government and the formal signing of contracts.
To date, Austal USA has delivered 34 vessels to the U.S. Navy and has been involved in the construction of Littoral Combat Ships (LCS) and Expeditionary Fast Transport (EPF) vessels. In 2022, it also produced modules for nuclear-powered submarines and continues to manufacture towing, rescue, and salvage vessels, as well as landing craft and coastal patrol boats for the U.S. Navy and Coast Guard.
Hanwha stated, "Our top priority is to significantly contribute to the revitalization of the U.S. shipbuilding industry," adding that it is exploring various options to expand its business base in the U.S.
Additionally, Hanwha secured a 19.9% stake in Austal last year for approximately 330 billion won, becoming the largest shareholder. If the acquisition proceeds, Hanwha will establish its second shipyard presence in the U.S., following its facility in the Philippines.
* This article has been translated by AI.
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