Hanwha Group is moving to acquire Austal USA, the U.S. operations arm of Australian shipbuilding and defense firm Austal, with an investment of up to 1.7 trillion won. If the acquisition is finalized, it will secure a second MASGA (Make American Shipbuilding Great Again) base in the United States, following the Philly Shipyard acquisition.
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 in 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 thorough due diligence on 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 was established in 1999 as a U.S. shipbuilding and defense company. Its headquarters is located in Mobile, Alabama. The order backlog amounts to approximately $10 billion, and it has delivered 34 warships to the U.S. Navy to date. The Mobile shipyard specializes in constructing vessels for the U.S. Navy and Coast Guard, producing modules for Virginia-class and Columbia-class nuclear submarines. It also operates vessel maintenance, repair, and overhaul facilities 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 be opportunities to access major U.S. Navy contract programs. Additionally, the connection point in the nuclear submarine supply chain between South Korea and the United States could expand.
A representative of Hanwha Defense USA stated, "Our top priority is making a tangible contribution to the reconstruction of the U.S. shipbuilding industry," adding, "We are reviewing various measures to expand our business base in the United States."
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