Hanwha Group may acquire Australian shipbuilder Austal

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Hanwha Group may acquire Australian shipbuilder Austal

Published: 02 Apr. 2024, 18:49

JIN EUN-SOO
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A photo of Hanwha Ocean Co.'s shipyard provided by the company [YONHAP]

Hanwha Group, South Korea's chemical-to-defense industry conglomerate, sees a good chance of acquiring Australian shipbuilder Austal, as it has expanded defense businesses in Australia including a deal for K9 self-propelled howitzers, a group official said Tuesday.

"Given that Hanwha Group is in the process of carrying out defense projects with Australia, such as K9 self-propelled howitzers and Redback infantry fighting vehicles, the possibility of acquisition is sufficient," the official said.

The Hanwha official made the remarks in response to a media report by Reuters that Austal rejected a takeover offer from Hanwha Ocean, the shipbuilding unit of Hanwha Group.

Austal rejected the offer because Australian and U.S. regulators are unlikely to approve it, according to the report.

Winning approvals from Australian and U.S. regulators are required because Austal is building warships for the U.S. Navy, it said.

Still, Hanwha Ocean has expressed its willingness to acquire Austal.

An official at Hanwha Ocean said the company is willing to accept all reasonable conditions to acquire Austal.

"South Korea has maintained close military cooperation with the U.S. and Australia by conducting joint drills with them," the Hanwha Ocean official said.

Yonhap