Shipbuilder Austal gets $1.2 billion offer for US operations from Hanwha

Aug 11 (Reuters) - Australian shipbuilder Austal ‌said on Tuesday ​that Hanwha ​Group had offered to buy its U.S. operations for up to $1.20 billion as the South Korean conglomerate seeks to expand in the American defence market.

Austal ‌shares rose more than 16%, logging their best intraday jump since mid-February. ⁠The stock was the top gainer on the benchmark ASX 200 index, which traded 0.2% higher as of ‌0125 GMT.

Hanwha Defence USA offered ‌to buy Austal's U.S. entities and operations for $1.05 billion to $1.20 billion, a move that would deepen its push into the U.S. defence market after acquiring the Philly Shipyard ​in Philadelphia in 2024.

"Hanwha has made it a priority to significantly contribute to revitalising American shipbuilding and is exploring a range of options to expand footprint in the ⁠United States," Hanwha Defense USA Spokesman James Hewitt said.

Austal, Australia's biggest shipbuilder, designs and builds vessels for the U.S. Navy ​and Coast Guard. Its U.S. business generated 90% of the group's A$108.5 million pre-tax profit in the 2025 financial year.

The offer does not ​include Austal's core operations in Australia, the Philippines and ‌Vietnam or its Sydney-listed shares. It will also not affect its Strategic Shipbuilding Agreement with the Australian government.

Austal has agreed to give the ⁠South Korean conglomerate four weeks to conduct due diligence, it said.

In December, the Australian government approved Hanwha's proposal to raise its stake in Austal to 19.9% from 9.9%, subject to conditions on data ⁠access and security.

LSEG data showed an entity owned by Hanwha still owned a 9.9% stake in Austal, ​while a private entity owned by billionaire Andrew Forrest held a 19.28% stake.

Hanwha Group told Reuters it owned a 19.9% stake in Austal, without disclosing further details. Austal said Hanwha owns a 9.9% stake ‌and a cash-settled equity swap arrangement for another 9.9%, which Hanwha also confirmed.

Austal said its U.S. business was expected to book an operating ‌earnings loss of A$175 million in 2026, reflecting higher losses on shipbuilding programmes.

That would leave the ⁠group with an operating loss of ‌A$113 million in 2026, compared ​with earnings of A$113.4 million a year earlier.

(Reporting by Sameer Manekar in Bengaluru; Additional reporting by Heejin Kim in Seoul; Editing by Shreya Biswas ‌and Subhranshu Sahu)

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