Hanwha Offers Up to $1.2 Billion for Austal USA Shipbuilding

South Korean conglomerate Hanwha Group has submitted a preliminary offer to acquire the U.S. shipbuilding operations of Australian defense contractor Austal for up to $1.2 billion, a move that would significantly expand its footprint in the American naval shipbuilding market. The proposal, announced on August 11, 2026, comes as Austal faces a major financial setback from unresolved U.S. Navy contract issues.

Austal confirmed it received the nonbinding offer from Hanwha Defense USA, which values Austal USA at between $1.05 billion and $1.20 billion on a cash and debt-free basis. The offer covers Austal's U.S. entities and operations but explicitly excludes the company's publicly listed shares and its core shipbuilding businesses in Australia, the Philippines, and Vietnam. Austal's board has determined the proposal warrants further evaluation and has granted Hanwha a four-week period to conduct due diligence.

The announcement sent Austal's shares soaring more than 16% on the Australian Securities Exchange. Hanwha already holds a significant stake in Austal, owning approximately 19.9% through a combination of shares and a cash-setted equity swap, a position approved by the...