Hanwha has passed a regulatory milestone in the United States to increase its current 9.9 per cent equity position in Austal Limited to 19.9 per cent.
The Committee on Foreign Investment in the US (CFIUS) has granted Hanwha clearance to increase its shareholding in Austal up to 100 per cent. CFIUS is the American equivalent to Australia's Foreign Investment Review Board (FIRB), and the letter showcases the US government's complete support for Hanwha's proposed investment in Austal, finding "no unresolved national security concerns."
“The CFIUS outcome is evidence of the strong support we have within the U.S. government, based on our track record of collaboration with U.S. and allied partners, our expertise and technology, and our performance in delivering on time and at scale. It is also consistent with the significant interest we are receiving from the U.S. government for further transfer of our technology and practices from Korea to help uplift shipbuilding in the United States," Hanwha Global Defence CEO, Michael Coulter, said.
Hanwha also has an application before Australia’s FIRB to increase its current 9.9% equity position in Austal to 19.9%.
"Hanwha remains committed to making a meaningful contribution to Austal as a trusted partner with complementary manufacturing and operational experience, which will help both Austal and its clients access the world’s best defence technology and practice,” Coulter affirmed.
Hanwha's original bid to become a major shareholder of Austal occurred earlier this year in March 2025. This came after Hanwha's previous attempts to acquire Austal and Hanwha’s unsuccessful bid for the Royal Australian Navy’s (RAN) General Purpose Frigates (GPF) program. In 2024, Hanwha submitted an indicative offer to the Austal board to acquire the global business of Austal, via a scheme of arrangement.
At the time, Minister for Defence, Richard Marles, was previously unconcerned by the prospect of a Hanwha takeover of Austal.
“Ultimately, this is a matter for Austal. They are a private company,” Marles stated when asked in 2024. “From the government’s perspective, we don’t have any concern about Hanwha moving in this direction.”