- Hanwha Defense USA has made a non-binding offer to acquire Austal USA
- The proposal excludes Austal’s publicly traded shares and Australasia operations
- The 2026 Navy Summit on Aug. 27 will explore AI, shipbuilding and more
Hanwha Defense USA has offered to buy the business operations of Austal USA in a preliminary, non-binding deal that values the U.S. shipbuilder at roughly $1.05 billion to $1.2 billion on a cash-free, debt-free basis, pending adjustments for working capital and other standard closing terms.
As U.S. shipbuilders and international partners pursue new investment to strengthen the domestic industrial base, government and industry leaders will gather at the Potomac Officers Club’s 2026 Navy Summit on Aug. 27. The event will feature discussions on artificial intelligence, shipbuilding, digital engineering, autonomous systems, network modernization and other priorities shaping the future maritime force. Sign up now to join the conversation.
Hanwha Defense USA said Monday it made the offer, which Austal Limited disclosed Tuesday in a market and trading update filed with the Australian Securities Exchange.
What Did Hanwha Defense USA Say About the Offer?
James Hewitt, spokesman for Hanwha Defense USA, said any transaction will be contingent on due diligence that allows for a full evaluation of Austal USA’s operations and financials, including newly disclosed information.
“Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States,” Hewitt added.
What Did Austal Disclose in Its Market Update?
Austal said it received the indicative, non-binding and conditional offer from Hanwha prior to issuing the update, and that the proposal does not include the acquisition of any publicly traded Austal shares or the company’s core Australasia operations in Australia, the Philippines and Vietnam. Austal said this preserves its strategic shipbuilding agreement with the Commonwealth of Australia.
The Austal board and its advisers have assessed the proposal and approved a four-week period, beginning once requested information is provided, for Hanwha to complete due diligence and engage with the U.S. Department of War and the U.S. Navy. The offer remains subject to regulatory approvals, including reviews under the Committee on Foreign Investment in the United States, the Defense Counterintelligence and Security Agency and the Hart-Scott-Rodino Antitrust Improvements Act, along with definitive transaction agreements and other customary conditions.
Austal said the proposal is not subject to a financing condition.
What Other Moves Has Hanwha Defense USA Made in U.S. Shipbuilding?
The offer follows a series of moves by Hanwha to build out its footprint in U.S. shipbuilding and defense manufacturing.
Hanwha Systems and Hanwha Ocean completed the acquisition of Philly Shipyard for approximately $100 million in December 2024, naming David Kim as chief executive officer of the renamed Hanwha Philly Shipyard.
In March, Hanwha Defense USA and Hanwha Philly Shipyard secured their first U.S. Navy work, joining Vard Marine US as a subcontractor on concept design for the Navy’s next-generation logistics ship program.
The Missile Defense Agency selected Hanwha Philly Shipyard and TOTE Services in July to build the agency’s Missile Range Instrumentation Vessels, with the first ship, named Golden Defender, due in 2030 to support the Golden Dome missile defense program.
Hanwha Defense USA also signed a lease for a K9 howitzer test and integration site in Opelika, Alabama, as part of a broader effort to localize production of the artillery system.
The company has reshaped its leadership team alongside these moves, naming Stephen Adams, a former Austal USA chief financial officer, as senior vice president of finance in June, following the March promotion of Reed Tewell to chief information officer.
