[CAPTIONS] A U.S. Navy vessel moves for launch after completing assembly at the Austal USA shipyard in Mobile, Alabama. /Austal USA - Seoul Economic Daily Finance News from South Korea[CAPTIONS]
A U.S. Navy vessel moves for launch after completing assembly at the Austal USA shipyard in Mobile, Alabama. /Austal USA

Hanwha Group is seeking to acquire a 100% stake in Austal USA, the U.S. arm of Australian shipbuilder and defense contractor Austal, which builds vessels for the U.S. Navy.

If completed, the deal would give Hanwha its second U.S. shipyard after the Philly Shipyard and open the door to participation in core U.S. Navy programs, including nuclear-powered submarines. It is also expected to add momentum to MASGA, a shipbuilding cooperation project between South Korea and the United States.

Austal said in a regulatory filing that Hanwha Defense USA had submitted a preliminary offer to acquire all of its U.S. entities and operations for between $1.05 billion and $1.2 billion (about 1.49 trillion to 1.7 trillion won), according to Bloomberg and other outlets on the 11th local time. Austal granted Hanwha a four-week due diligence period. The offer excludes Austal’s operations in Australia, the Philippines and Vietnam, as well as its shares listed on the Sydney exchange.

Austal USA specializes in building vessels for the U.S. Navy and Coast Guard at its shipyard in Mobile, Alabama, employing about 3,500 workers. It also owns a ship repair facility in San Diego, California.

Hanwha attempted a full takeover of Austal in 2024, but the bid fell through. In December of last year, it obtained approval from the Australian government to hold a 19.9% stake in Austal, subject to conditions on data access and security.