Hanwha Group announced on the 10th that it has received approval from the U.S. government to hold up to 100% equity in Australia's Austal.
Hanwha acquired a 9.9% equity stake in Austal through over-the-counter trading in March. At the same time, it applied for approvals from the Australian and U.S. governments to expand its equity to 19.9%.
Austal is a global maritime defense company headquartered in Australia, managing shipbuilding operations in Mobile, Alabama, and San Diego, among other locations.
Hanwha applied for approval from the U.S. Foreign Investment Committee (CFIUS), the key agency that examines the impact of foreign investments and mergers on U.S. national security, for the acquisition of a 19.9% equity stake in Austal.
CFIUS noted that there are "no unresolved national security concerns" and approved the expansion of equity to up to 100%. This approval is seen as a reflection of the U.S. government's trust in Hanwha's technological capabilities and operational competence, as well as its global partnerships.
Michael Coulter, CEO of Hanwha Global Defense, remarked, "This approval symbolizes that Hanwha has received trust and support from the U.S. government," and stated that the company will contribute to strengthening the competitiveness of the U.S. shipbuilding industry through its collaboration with Austal.
Hanwha plans to leverage its shipbuilding capabilities to enhance the global operations of Austal, thereby raising the competitiveness of both companies together. The company will also actively pursue joint business expansion in the defense markets of the U.S. and Australia.
Currently, Hanwha is awaiting the results of its application for approval from the Australian Foreign Investment Review Board (FIRB) for the acquisition of a 19.9% equity stake in Austal.