South Korean conglomerate Hanwha Group’s bid to acquire a significant stake in shipbuilder Austal is currently being reviewed by Australia’s Foreign Investment Review Board, ChosunBiz reported.
Under its acquisition plan, Hanwha seeks to purchase 19.9 percent of Austal shares. The potential transaction builds on the 9.91 percent equity the Korean company secured through an over-the-counter transaction using its Australian subsidiary, HAA No.1 Pty Ltd, and the 9.9 percent stake it holds through a Total Return Swap contract via a local securities firm.
In 2024, Hanwha attempted to purchase Austal, but the deal was rejected due to potential regulatory scrutiny. While the latest potential transaction will make the Korean company Austal’s largest shareholder, it does not equate to ownership of the Australian shipbuilder nor guarantee a seat on its board, ChosunBiz said.
Austal builds military and commercial maritime vessels. Its most notable products include high-speed passenger and vehicle-passenger ferries such as the Passenger Express 50 and the Euroferrys Pacifica.
The stake acquisition will also be reviewed by the Committee on Foreign Investment in the United States, as Austal manufactures naval vessels for the U.S. Navy.