Australia approved Hanwha Group’s bid to nearly double its stake in shipbuilder Austal Ltd., though the Korean conglomerate will face significant restrictions designed to protect sensitive defense information.
Treasurer Jim Chalmers said Friday he accepted the Foreign Investment Review Board’s recommendation not to block Hanwha’s proposal to raise its holdings from 9.9% to 19.9%. The decision follows months of regulatory scrutiny given Austal’s role as a supplier to both the Royal Australian Navy and U.S. Navy.
Under the approval terms, Hanwha faces limitations on accessing classified data, strict criteria for any board nominees, and controls over how sensitive information is stored. The Korean company is also barred from increasing its stake beyond 19.9%.
Hanwha acquired its initial position in March through open-market transactions after Austal rejected its A$1.02 billion ($650 million) takeover approach in 2024. The U.S. Committee on Foreign Investment cleared Hanwha for a potential full acquisition in June, though Canberra has taken a more cautious approach.
Trading in Austal shares was halted following the announcement. The Perth-based company holds a dominant position in building small surface vessels and logistics ships for the U.S. Navy and recently signed a technology agreement with submarine builder ASC under the AUKUS defense pact.
