Hanwha Group has received approval from the Australian government to acquire an additional stake in Australia-based shipbuilding and defense firm Austal, local media reported Friday, in a move that strengthens its strategy to expand its shipbuilding base into Oceania and North America.
Australia’s Treasurer Jim Chalmers said in a statement the Canberra government has decided to allow Hanwha to increase its shareholdings in Austal to 19.9 percent from 9.9 percent, according to news reports.
However, the minister noted that the Korean conglomerate, whose businesses span energy, defense and finance, will be barred from raising its stake above the 19.9 percent threshold.
Headquartered in Australia, Austal is a global defense shipbuilder with major operations in the United States and supplies vessels to the U.S. Navy.
Hanwha Group has sought to acquire Austal since early last year, but failed in its initial attempt in April 2024 after the Australian shipbuilder rejected the proposal.
After purchasing a 9.9 percent stake in March through affiliates Hanwha Aerospace Co. and Hanwha Systems Co., the group sought approval from both the Australian and U.S. governments to raise its holdings by an additional 10 percentage points.
In June, the Korean company secured approval from the U.S. government for a potential 100 percent stake acquisition.
The move follows Hanwha’s purchase of Hanwha Philly Shipyard in the U.S. last year.
Hanwha said it plans to leverage its shipbuilding capabilities to boost Austal’s global competitiveness while exploring expanded joint business opportunities in the U.S. and Australian defense markets.
“We respect the Australian government’s decision and will make constant efforts to maintain smooth bilateral relations and create a mutually beneficial future,” said the company.
Source: YONHAP NEWS AGENCY