▲ Hanwha Defense USA
Hanwha Group is pursuing a 100% stake acquisition of Austal USA, the U.S. business unit of Australian shipbuilder and defense contractor Austal.
Austal USA is a company that manufactures U.S. Navy ships and nuclear-powered submarine modules.
Hanwha Defense USA stated, "We have submitted a preliminary and non-binding proposal to acquire Austal's U.S. business unit."
Austal also confirmed that it received a proposal from Hanwha Defense USA to acquire its business entity and operating assets, noting that the enterprise value was proposed at USD 1.05 billion to 1.2 billion, approximately KRW 1.5 trillion to 1.7 trillion.
Hanwha Defense USA explained that the acquisition transaction is subject to due diligence to closely evaluate Austal USA's business operations and financial condition.
It added, "Hanwha prioritizes contributing to the revitalization of the U.S. shipbuilding industry and is reviewing various measures to expand its business foundation within the United States."
Following its previous expansion of Austal shares up to 19.9%, Hanwha aims to further expand its business foundation in the U.S. shipbuilding and defense market by acquiring Austal's U.S. operations.
According to The Wall Street Journal, Austal USA specializes in building ships for the U.S. Navy and Coast Guard at its shipyard in Mobile, Alabama, and supplies modules used in building U.S. Navy Virginia-class attack submarines and Columbia-class strategic nuclear-powered submarines to General Dynamics Electric Boat.
The Wall Street Journal reported that if Hanwha's acquisition succeeds, it will be able to participate in major defense contracts, including the U.S. Navy's most sensitive programs.
(Photo: Yonhap News)
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