Austal Questions Hanwha’s Statement of US Approval to Buy Shares

 

The opposition from Australian shipbuilder Austal toward the proposed acquisition or investment by South Korea’s Hanwha Group continues. Austal filed a statement with the Australian Stock Exchange reporting it was seeking verification and written confirmation after Hanwha reported it had received U.S. approval to proceed with an investment in the Australian shipbuilder.

Hanwha Group issued a press release saying that it had received approval from the U.S. government “to acquire up to a 100 percent stake in Australia’s Austal.” Hanwha wrote that the U.S.’s Committee on Foreign Investment stated “there are no unresolved national security concerns,” with its proposal to acquire a 19.9 percent ownership stake in Austal. 

“This approval is a significant milestone that symbolizes Hanwha’s trust and support from the U.S. government,” the release said in a statement attributed to the CEO of Hanwha Global Defense Michael Coulter.

Austal however reports it “sought independent verification” after receiving the information from Hanwha about the CFIUS approval. It notes it has also seen Hanwha’s statements in the media.

“Based on informal discussions to date, Austal understands that the approval granted by CFIUS is different to that claimed by Hanwha,” Austal writes in its stock exchange filing dated June 10. The company reports it is “seeking written confirmation from CFIUS.”

Hanwha has been seeking to invest Austal after it was rebuffed by the Australian company in its attempts to acquire Austal. The Australian Financial Review reports Hanwha made its first approach to Austal in late 2023 proposing a takeover. The AFR says Hanwha presented three more non-binding bids and conducted preliminary approvals reviews in Australia and the United States. 

Austal rejected all the proposals and publicly questioned if Hanwha could receive approval due to Austal’s defense-related business and national importance to Australia. Austal said it would discuss the proposals if Hanwha could first obtain approvals in the U.S. and Australia while Hanwha asserted Austal had established onerous conditions for a due diligence review.

Hanwha Group in March 2025 reported it had acquired 9.9 percent of Austal’s shares in open market transactions and that it was entering into a swap agreement with an Australian investment firm to acquire an additional 9.9 percent of Austal’s shares. Hanwha declared its intent to hold a 19.9 percent position in Austal, which if approved would give the South Korean conglomerate the largest investment position in Austal, exceeding the 17 percent held by the Forrest family that became Austal’s largest investor in 2022.

Under both Australian and U.S. law, Hanwha can make up to a 10 percent passive investment in Austal without needing approval. Hanwha had said in March it chose the investment route because of the delays for its proposals, but it did not rule out further increasing its investment in Austal.

Hanwha writes that it plans to integrate its shipbuilding capabilities into Austal’s global business to enhance the competitiveness of both companies. It also plans to actively pursue joint business expansion in the U.S. and Australian defense markets.

“This is an example that shows the potential for high synergy when Korean shipbuilding technology and operational systems are combined with the U.S. defense industry,” Coulter says in Hanwha’s statement. It also says he emphasized, “We will contribute to strengthening the competitiveness of the U.S. shipbuilding industry through our collaboration with Austal.”

Australia’s Foreign Investment Review Board (FIRB) is yet to rule on the application from Hanwha to proceed with the increased investment in Austal. The reports are that the board has up to six months. Austal however highlights the final decision rests with the Australian Treasurer.

While the Australian government has sought to protect and strengthen its defense industry, the media reports in the past Australia’s Minister for Defense, Richard Marles, has said this was a matter for Austal as a private company. Marles said the government was not concerned by Hanwha’s efforts while Hanwha has cited its other projects with the Australian defense industry and the government.