WASHINGTON — Hanwha Defense USA, a subsidiary of South Korea’s Hanwha Aerospace, has announced a preliminary, non‑binding offer to acquire Austal USA.
Any transaction will depend on a comprehensive due‑diligence process that evaluates Austal USA’s operations and finances, including newly disclosed information, according to spokesman James Hewitt. Hanwha Defense USA emphasized its commitment to strengthening U.S. shipbuilding and expanding its domestic presence.
Austal Ltd., the Australian parent of Austal USA, said its board and advisers have reviewed the proposal and concluded it warrants further evaluation, granting Hanwha permission to conduct due diligence on Austal USA to refine the deal’s viability. The statement suggests Austal is open to selling its U.S. unit if the terms are favorable.
The transaction is projected to value Austal USA at between $1.05 billion and $1.2 billion on a cash‑and‑debt‑free basis, according to Austal’s financial guidance.
The offer excludes any acquisition of Austal’s publicly traded shares or its Australasian operations, preserving the company’s sovereign shipbuilding mandate and the performance of its Asia‑Pacific businesses for shareholders.
Hanwha’s earlier bid to acquire the entire Austal in April 2024 was rejected after the Australian firm raised doubts about securing U.S. and Australian regulatory approvals. Austal indicated it would consider further talks if Hanwha could provide regulatory certainty, but Hanwha withdrew its offer in September after re‑evaluating the regulatory landscape.
In June 2024, Hanwha completed the acquisition of Philly Shipyard, a facility that builds both commercial and military vessels, including the National Security Multi‑Mission Vessel (NSMV) used for training at state maritime academies and a new missile‑range instrumentation vessel supporting the Pentagon’s Golden Dome missile‑defense system.
Austal USA operates shipbuilding and support facilities in Mobile, Alabama, producing steel and aluminum vessels for the Coast Guard and Navy, such as the Independence‑variant Littoral Combat Ship.
This story is developing and will be updated as new information becomes available.
