Hanwha Gains US Approval to Expand Stake in Austal Shipbuilder

South Korea's Hanwha Group has received approval from the U.S. Committee on Foreign Investment in the United States (CFIUS) to acquire up to 100% ownership of Australian shipbuilder Austal Limited, a key U.S. military shipbuilder with major facilities in Alabama and other U.S. locations. Hanwha currently holds a 9.9% stake in Austal and plans to increase this to 19.9%, pending approval from Australia’s Foreign Investment Review Board. The U.S. government's clearance reflects strong support for Hanwha's investment, citing no unresolved national security concerns and interest in transferring Korean shipbuilding technology to enhance the U.S. shipbuilding industry. Hanwha aims to leverage its shipbuilding expertise to boost Austal's global competitiveness and expand joint defense business opportunities in the U.S. and Australia. Despite Austal's prior resistance and accusations of misrepresentation by Hanwha, the approval marks a significant step in Hanwha's strategic expansion into the global defense market amid the Trump administration’s focus on revitalizing U.S. naval shipbuilding. Hanwha’s efforts follow previous attempts to acquire Austal and expand its footprint in the defense shipbuilding sector.