Hanwha Receives U.S. Government Approval to Acquire up to 100% Stake in Austal

"No National Security Concerns" for CFIUS 19.9% Acquisition Application
Australian Government Approval Pending... Hanwha Accelerates Stake Expansion

Hanwha Group has received approval from the U.S. government to acquire up to 100% of the shares of Austal, an Australian maritime defense company. Hanwha, which is aiming to acquire a 19.9% stake, has secured greater trust than expected and is now in a favorable position to expand its strategic partnership with Austal in the future.

On June 10, Hanwha announced that it had received approval from the Committee on Foreign Investment in the United States (CFIUS) on June 6 regarding its acquisition of shares in Austal. After acquiring a 9.9% stake in Austal through an over-the-counter transaction in March, Hanwha applied to CFIUS for investment review with the goal of increasing its stake to 19.9%. CFIUS determined that there were "no unresolved national security concerns" and granted permission for Hanwha to acquire up to 100% of Austal's shares.

The lobby of Hanwha Group headquarters located on Cheonggyecheon-ro, Jung-gu, Seoul. Photo by Yonhap News

The defense industry interprets this as a sign of the U.S. government's trust in Hanwha's core business capabilities, including its technological strength, ability to meet deadlines, and budget management skills. Michael Coulter, CEO of Hanwha Global Defense, stated, "This approval is a symbolic event that demonstrates Hanwha's trust and support from the U.S. government," adding, "Through cooperation with Austal, we will contribute to strengthening the competitiveness of the U.S. shipbuilding industry."

Hanwha plans to actively leverage its shipbuilding capabilities acquired through Austal in the U.S. and Australian maritime defense markets. The company is currently discussing specific ways to expand cooperation in areas such as joint vessel development and ship repair businesses. Hanwha is also pursuing strategies to strengthen its position within the global shipbuilding and defense value chain.

Currently, Hanwha is also undergoing the approval process from the Foreign Investment Review Board (FIRB) in Australia to increase its stake. Once FIRB approval is completed, Hanwha is expected to begin the process of acquiring additional shares in Austal in earnest.