Potential U.S. Bidder Emerges to Challenge Hanwha for Austal USA
Australia-based Austal confirmed in a brief stock exchange statement on Monday, September 7, that it has had initial, preliminary discussions with a U.S.-based investment firm, Wildcat Infrastructure, which is reported to be interested in the Austal USA operations. Austal said it has not received any proposal, but if the U.S.-based investor proceeds, it would be challenging Hanwha Group, which has approval to proceed with due diligence after it expressed interest in acquiring the U.S. operations of Austal.
Austal was responding to media reports in Western Australia that broke the news of the potential second bidder. The unconfirmed reports said Wildcat could place a competing bid for the U.S. operations as early as this week.
Wildcat Infrastructure has not commented but is listed online as being based in Florida and started in 2010. It says its strategy is focused on critical infrastructure, speci?cally energy (clean and renewable), information (5G), transport (bridge and roads), and water infrastructure (clean water and wastewater systems). Its website reports that it launched its defense business in 2026 in response to global events and increases in U.S. and allied defense spending. It is said to be targeting prime contracts and defense technologies. William Elischer, whose career includes senior roles in Australia's Department of Foreign Affairs and Trade, is listed as leading Wildcat's investment activities and strategic development across defense and national security.
Speaking to investors during the company’s recent earnings report, Austal CEO Paddy Gregg said there was “great momentum” for the process with Hanwha. A U.S. division of the South Korean group in early August sent the Australian company an indicative, non-binding and conditional offer to acquire the operations of Austal USA for an indicative enterprise value of US$1.05 – 1.20 billion on a cash and debt-free basis. The Austal board and its advisers determined that the offer merited further evaluation, approving Hanwha to undertake due diligence.
Hanwha has expressed interest in buying Austal, making overtures in 2025, but Austal said it doubted a deal could gain regulatory approval. Hanwha acquired nearly 10 percent of Austal’s stock on the open market and received permission from Australia’s regulators to increase its stock position to 19.9 percent.
Austal reportedly is interested in focusing on its Australian shipbuilding operations and its satellite operations in the Philippines and Vietnam. It completed a Strategic Shipbuilding Agreement with Australia and has a current orderbook valued at US$4 billion in Australia.
that matters most
Get the latest maritime news delivered to your inbox daily.
The company established its U.S. operations in 1999 and has become a major contractor to the U.S. government, although it has had financial challenges in the U.S. On its website, it says it has delivered 34 ships to the U.S. Navy and has a nearly $10 billion contract backlog that includes Navy and Coast Guard surface ships and module production for submarines and aircraft carriers. Its primary yard is in Mobile, Alabama, with a repair operation that was started in 2021 in San Diego, California.
Any acquisition in the United States will require government approval, and the media reports indicate that the Pentagon has been stalling discussions with Hanwha for the Austal operations. The Trump administration has been receptive to South Korea’s planned investments in U.S. shipbuilding and to Hanwha, which acquired Philly Shipyard. However, there is speculation in the media that it might be more comfortable with a U.S. investor taking ownership of Austal USA.
