Hanwha has acquired a 9.9 percent stake in Austal, increasing its total shareholding to 19.9 percent, pending approval from Australia’s Foreign Investment Review Board (FIRB).
The move follows previous acquisition attempts by Hanwha and its unsuccessful bid for the Royal Australian Navy’s General Purpose Frigates (GPF) program.
“As a strategic shareholder there will be a great opportunity for us to add significant value to Austal’s business, including in global defense and shipbuilding, supporting investment in Australia’s local manufacturing industry and capacity,” said Michael Coulter, Global CEO and President of Hanwha Defense.
Hanwha has applied for FIRB approval to finalize its 19.9 percent stake, as foreign investments exceeding 10 percent in an Australian company require government approval. The company has already acquired 9.9 percent of Austal Limited (ASB) ordinary shares through market purchases and will also need U.S. approval due to Austal’s defense contracts with the country.
“Hanwha’s global defense strategy prioritizes growing local, sovereign presence through investment and partnerships, as exemplified by our investment in land capability in Geelong and elsewhere around the world. We believe strongly that we can replicate that success with Austal, investing in sovereign capabilities both in Australia and with its global operations,” Coulter said.
Australian Minister for Defense Richard Marles previously stated that the government has no concerns over Hanwha’s increased stake in Austal.
“Ultimately, this is a matter for Austal. They are a private company,” Marles said in 2024. “From the government’s perspective, we don’t have any concern about Hanwha moving in this direction.”
In 2024, Hanwha submitted an indicative offer to acquire Austal’s global business through a scheme of arrangement.
“There is no foundation of the claim that the Foreign Investment Review Board (FIRB) would reject Hanwha’s acquisition of the company,” said David Kim, Hanwha’s Executive Vice President.
Hanwha had previously received FIRB approval for other investments in Australia.
In November 2023, the Australian government designated Austal as the Commonwealth’s strategic naval shipbuilder in Western Australia, securing long-term defense contracts as part of the rationalization of Perth’s Henderson maritime precinct.