Australian Shipbuilder Gets $1.7 Billion Offer for US Operation

Australia’s largest shipbuilder is weighing a significant offer from South Korean multinational Hanwha for its U.S. operations, with the potential sale valued between $1.5 billion and $1.7 billion. This offer represents a substantial portion of the shipbuilder’s projected revenue. The company’s board has permitted Hanwha to proceed with due diligence, and the transaction will not be subject to Australian Foreign Investment Review Board approval due to the U.S. location.

• Australia’s largest shipbuilder is considering selling its U.S. operations.
• South Korean multinational Hanwha has made a tentative offer of US$1.05 billion to US$1.2 billion (A$1.5 billion to A$1.7 billion).
• The offer is equivalent to more than three-quarters of Austal’s projected 2025 revenue.
• Austal’s board is evaluating the proposal and has allowed Hanwha to conduct due diligence.
• The potential takeover will not face Australian Foreign Investment Review Board scrutiny.