Hanwha seeks to secure second U.S. shipyard... moves to acquire Austal USA for up to 1.7 trillion won

Hanwha Group is moving to acquire Austal USA, the U.S. business unit of Australian shipbuilding and defense company Austal, for up to 1.7 trillion won. If the acquisition is completed, it will secure a second MASGA (Make American Shipbuilding Great Again) base in the United States following the Philly Shipyard.

Hanwha Defense USA announced on the 10th (local time) that it has submitted a non-binding, conditional proposal to Austal for the acquisition of Austal USA. The target of the acquisition review includes all business entities and operating assets comprising Austal USA. The transaction is structured so that Hanwha acquires 100% of the shares of the holding company related to Austal USA.

Hanwha's proposed corporate valuation for Austal USA ranges from $1.05 billion to $1.2 billion (approximately 1.5 trillion to 1.7 trillion won). Over the next four weeks, Hanwha will conduct due diligence to closely examine Austal USA's business and financial status. During the due diligence period, Hanwha plans to consult with key counterparties of Austal USA, including the U.S. Department of War, the U.S. Navy, and the U.S. Coast Guard. If necessary, discussions will also be held with Australia's Ministry of National Defense.

Austal USA is a U.S. shipbuilding and defense company established in 1999. Its headquarters are located in Mobile, Alabama. The order backlog amounts to approximately $10 billion, and it has so far delivered 34 vessels to the U.S. Navy. The Mobile shipyard specializes in constructing vessels for the U.S. Navy and Coast Guard and produces modules for Virginia-class and Columbia-class nuclear submarines. It also operates a vessel maintenance, repair, and overhaul (MRO) facility in San Diego, California.

If this deal is finalized, synergies are expected with Philly Shipyard, which Hanwha acquired in 2024. Having established a foothold for entering the U.S. market centered on commercial ship and warship construction, there may now be an opportunity to access major U.S. Navy contract programs. The connection point in the nuclear submarine supply chain between South Korea and the United States could also be expanded. A Hanwha Defense USA official stated, "Our top priority is to make a tangible contribution to rebuilding the U.S. shipbuilding industry," adding, "We are reviewing various measures to expand our business base in the United States."