Hanwha Aerospace Bids $1.2 Billion for Austal US Operations

Hanwha Aerospace Co. has submitted a preliminary offer of up to $1.2 billion to acquire the United States shipbuilding operations of Austal Ltd. The South Korean aerospace and defense company intends to use the acquisition to increase its share of global defense spending.

Austal has granted Hanwha permission to conduct due diligence to finalize the bid. The proposal specifically excludes Austal's core operations in Australia, the Philippines, and Vietnam, and does not impact the Strategic Shipbuilding Agreement between Austal and the Australian government.

The targeted US unit is the primary driver of Austal's business, generating nearly 80% of the company's revenue. These operations are based in Mobile, Alabama, with additional centers located in San Diego and Charlottesville. Despite the acquisition interest, Austal expects its US division to report a A$175 million loss before interest and tax in fiscal 2026, which the company attributes to legacy contracts.