Hanwha has moved to become a major shareholder of Austal, acquiring a 9.9 per cent stake to increase its ownership to 19.9 per cent subject to Foreign Investment Review Board (FIRB) approval.
This move comes after previous attempts by Hanwha to acquire Austal and Hanwha’s unsuccessful bid for the Royal Australian Navy’s (RAN) 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 defence and shipbuilding, supporting investment in Australia’s local manufacturing industry and capacity,” Global Chief Executive Officer and President at Hanwha Defence, Michael Coulter said.
Hanwha has applied for FIRB approval to achieve their 19.9 per cent shareholding,. Any foreign investment into an Australian company above 10 per cent needs FIRB approval. Currently, the South Korean company has 9.9 per cent in Austal Limited (ASB) ordinary shares, acquired through Hanwha purchase trades from various sellers. Hanwha will also require approval from the US due to Austal’s defence contracts with the country.
“Hanwha’s global defence strategy prioritises 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 explained.
Minister for Defence Richard Marles has appeared previously unconcerned by the prospect of a Hanwha takeover of Austal.
“Ultimately, this is a matter for Austal. They are a private company,” Marles said when asked 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 the Austal board to acquire the global business of Austal, via 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,” Hanwha's Executive Vice President David Kim has previously said.
That statement came after Hanwha had already gained FIRB approval for prior investments in Australia.
In November 2023, the government announced that the ASX-listed company will become the Commonwealth’s strategic naval shipbuilder in Western Australia, guaranteeing it a continuous pipeline of contracts as part of the rationalisation of Perth’s Henderson maritime precinct.