Hanwha Offers Up to $1.2 Billion for Austal's US Shipbuilding Business

Hanwha Group is moving to expand its reach in the American shipbuilding industry, with its US subsidiary submitting a preliminary offer to acquire the US business of Austal, Australia's largest shipbuilder. Hanwha Defense USA, a unit of Hanwha Aerospace, confirmed Tuesday that it had put forward a non-binding proposal for Austal's American operations, which build vessels for the US Navy and Coast Guard.

Austal disclosed separately that the offer values its US business at between $1.05 billion and $1.2 billion on a cash and debt-free basis. The Australian company's board has given Hanwha a four-week window to conduct due diligence before any binding agreement could be reached. Hanwha said the eventual deal terms would depend on a thorough review of Austal USA's operations and finances, including information disclosed as part of the process.

The bid comes after Hanwha built up a 19.9 percent stake in Austal, making it the company's largest shareholder. Notably, the current offer targets only Austal's US arm rather than the parent company as a whole, signaling that Hanwha's ambitions are centered squarely on the American market.

Austal USA, headquartered in Mobile, Alabama, has long been a trusted supplier to the US military, having built Littoral Combat Ships, Expeditionary Fast Transport vessels, and Coast Guard cutters, while also producing components for nuclear-powered submarines. The company additionally runs maintenance, repair and overhaul operations for the Navy out of a facility in San Diego.

For Hanwha, acquiring Austal USA would add a second major American production base to its portfolio, complementing the Philly Shipyard in Pennsylvania that it purchased in 2024. Access to Austal USA's decades of relationships with the Pentagon and Navy could help Hanwha compete for new shipbuilding contracts as well as lucrative maintenance work. The Korean conglomerate has already picked up assignments tied to a missile-tracking ship and a design contract for a naval logistics vessel over the past year.

"Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States," Hanwha Defense USA said in a statement. Analysts note that a completed acquisition would also give momentum to the Make America Shipbuilding Great Again initiative, under which Seoul pledged $150 billion toward the US shipbuilding sector as part of a broader $350 billion investment package, and could bolster Hanwha's role in the Navy's nuclear submarine supply chain.