Hanwha offers up to $1.2 billion for Austal's U.S. operations

South Korean conglomerate Hanwha Group has submitted a non-binding offer to acquire the U.S. operations of Australian shipbuilder Austal for between $1.05 billion and $1.20 billion. The deal specifically targets Austal USA, a major defense contractor based in Mobile, Alabama, which builds vessels for the U.S. Navy and Coast Guard.

Following the announcement, Austal shares rose significantly, with some reports noting a jump of over 16% on the ASX. The proposed acquisition would allow Hanwha to expand its American defense footprint, following its 2024 acquisition of the Philly Shipyard. Hanwha has already secured a 19.9% stake in the parent company, Austal.

The offer excludes Austal’s core operations in Australia, the Philippines, and Vietnam, as well as its Sydney-listed shares. Austal has granted Hanwha a four-week period to conduct due diligence. While the U.S. division has been a primary profit driver for Austal, it is projected to face an operating loss of approximately A$175 million in fiscal 2026 due to higher shipbuilding program costs.