[Breaking] Hanwha Group moves to acquire Austal’s U.S. unit for up to 1.7 trillion won

Following headquarters, it is pushing to acquire the U.S. unit MASGA project expected to gain momentum

사진 확대 Austal’s shipyard in the United States. Austal website

Hanwha Group is seeking to acquire Austal USA, the U.S. business unit of Austal, an Australian shipbuilding and defense company. Hanwha is the largest shareholder, holding a 19.9% stake in Austal. After the Australian headquarters, the group is now moving directly to acquire the U.S. unit, which is considered one of Austal’s core assets.

According to business circles on the 11th, Hanwha, through Hanwha Defense USA, Inc., offered between $1.05 billion and $1.2 billion, or up to about 1.7 trillion won, on the condition that it acquire 100% of Austal USA’s business entity and operating assets.

Austal USA operates shipyards in Mobile, Alabama, and San Diego, California. It is a key supplier with a 40% to 60% share in the U.S. Navy’s small surface combatant support vessels and logistics support vessels.

Because the company has established stable technology and supply chains in the U.S. market, expanded cooperation with Hanwha is expected to have a significant impact on the American shipbuilding and defense industries. In particular, Austal USA secured a direct link to the U.S. nuclear submarine value chain in 2024 by signing a contract with General Dynamics Electric Boat to build a production facility for SSN modules.

Hanwha had previously secured a 19.9% stake in Austal, the Australian company that serves as the headquarters.

Hanwha Group is using Philadelphia Shipyard as its U.S. base for the MASGA project, a Korea-U.S. shipbuilding cooperation initiative, as it seeks to enter the commercial and naval shipbuilding markets.

Austal operates shipyards in the United States and directly builds small and medium-sized surface vessels and logistics support ships. If Hanwha succeeds in the acquisition, analysts say it would lay the groundwork for future participation in nuclear submarine projects.

A Hanwha Group official said, “Hanwha has made contributing to the rebuilding of the U.S. shipbuilding industry its top priority,” adding, “We are exploring various measures to expand our business base in the United States.”

This article has been translated by GripLabs Mingo AI.