en.Wedoany.com Reported - On August 11, Australian shipbuilder Austal disclosed that Hanwha Defense USA, a subsidiary of South Korea's Hanwha Group, has proposed to acquire its U.S. entities and operations, with an indicative enterprise value of $1.05 billion to $1.2 billion. The asset acquisition remains a non-binding proposal, and Austal has agreed to grant Hanwha a four-week period to conduct due diligence.
The price range covers only Austal's U.S. entities and operating assets, excluding its core businesses in Australia, the Philippines, and Vietnam, as well as Austal's shares listed on the Sydney exchange. The proposed transaction would not alter Austal's strategic shipbuilding agreement with the Australian government.
Austal's U.S. business primarily designs, builds, and maintains vessels for the U.S. Navy and the U.S. Coast Guard. The company has delivered 34 ships to the U.S. Navy since 2009 and has been involved in the manufacturing and outfitting of modules for the Virginia-class and Columbia-class nuclear submarines since 2022. The business currently employs more than 3,500 people in the United States, with cumulative investment in shipyard facilities of approximately $1 billion.
In fiscal year 2025, Austal's U.S. business contributed approximately 90% of the group's A$108.5 million pre-tax profit. Due to expected increases in losses on several shipbuilding projects, the business is projected to record an operating loss of A$175 million for the fiscal year ending June 30, 2026, while the group is expected to post an operating loss of A$113 million for the same period.
Hanwha Ocean previously proposed to acquire all shares of Austal for approximately A$1.02 billion in 2024, but Austal declined the offer at the time due to uncertainties surrounding regulatory approvals. The Australian government subsequently granted conditional approval in December 2025 for Hanwha to increase its stake in Austal from 9.9% to 19.9%. The current proposal shifts to a standalone acquisition of the U.S. business, and both parties will decide whether to proceed with negotiations on final transaction documents after the four-week due diligence period concludes.
