Hanwha has proposed acquiring 100 percent of the businesses and operating assets of Austal USA at an enterprise value of between $1.05 billion and $1.2 billion on a cash-free, debt-free basis.
The move comes after Hanwha built a 19.9 percent stake in Austal Ltd., the Australian-listed parent company, and would give the Korean conglomerate direct control of another major U.S. shipbuilding base alongside its existing Philly Shipyard.
According to industry sources Tuesday, Hanwha Defense USA submitted a nonbinding and conditional proposal to acquire Austal's U.S. operations.
The proposal does not involve the acquisition of Austal as a whole. Its businesses in Australia, the Philippines and Vietnam would remain outside the transaction.
The final purchase price would be determined following due diligence, negotiations on definitive agreements and regulatory reviews. Hanwha is expected to conduct due diligence for about four weeks.
The proposal is subject to a series of U.S. regulatory approvals, including reviews by the Committee on Foreign Investment in the United States (CFIUS), the Defense Counterintelligence and Security Agency and antitrust clearance under the Hart-Scott-Rodino Act.
Hanwha also plans to consult with key U.S. government customers, including the Department of Defense, Navy and Coast Guard, before submitting a more definitive proposal.
If completed, the deal would give Hanwha two major U.S. shipbuilding hubs: Philly Shipyard on the East Coast and Austal USA's yard in Mobile, Alabama.
Austal USA builds vessels for the Pentagon, U.S. Navy and Coast Guard and has produced Littoral Combat Ships, Expeditionary Fast Transport vessels, Coast Guard cutters and other auxiliary ships. It also participates in the production of modules for U.S. nuclear-powered submarines.
The company would therefore provide Hanwha with a stronger foothold as it seeks to enter the U.S. Navy's newbuild and maintenance, repair and overhaul markets and expand cooperation between Austal USA and Philly Shipyard.
Hanwha's pursuit of Austal dates back several years.
In 2024, Hanwha initially sought to acquire Austal in its entirety but abandoned the plan amid regulatory hurdles involving national security reviews in the United States and Australia. It shifted its strategy in 2025 to gradually building a stake in the Australian parent company.
Hanwha first acquired a 9.9 percent stake in Austal in 2025 and later received approval from the Australian government in December that year to raise its holding to 19.9 percent.
The latest proposal marks a further refinement of that strategy, focusing specifically on Austal USA, a key production base for U.S. naval vessels, while excluding Austal's operations in Australia and other markets.
"We have made a nonbinding preliminary proposal to acquire Austal's U.S. business," a Hanwha Defense USA official said. "Any transaction will be determined based on the results of due diligence."
"Hanwha's top priority is to make a meaningful contribution to the revitalization of the U.S. shipbuilding industry," the official added. "We are exploring a range of opportunities to expand our business in the United States."
AJP Takeaways
△ Hanwha has offered up to $1.2 billion to acquire Austal USA.
△ The deal would add a second major U.S. shipbuilding base alongside Philly Shipyard.
△ Hanwha is targeting deeper access to U.S. Navy, Coast Guard and defense programs.
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