A view of Austal’s shipyard in Mobile, U.S., in which Hanwha Group has made a strategic equity investment. (Photo: Austal website)
SEOUL, June 10 (Korea Bizwire) — South Korea’s Hanwha Group said Tuesday it has received approval from the U.S. government to acquire up to a 100 percent stake in Australia-based shipbuilding and defense firm Austal, clearing a major hurdle in its push to expand its presence in the global defense market.
The recent approval from the Committee on Foreign Investment in the United States (CFIUS) allows Hanwha to increase its current 9.9 percent stake in Austal to full ownership, the group said. Hanwha had initially filed for CFIUS to approve a 19.9 percent stake acquisition.
CFIUS is an interagency committee of the U.S. government that reviews the national security implications of foreign investments in U.S. companies. Austal operates a major U.S. naval shipyard in the United States.
This undated file photo shows the corporate logo of Hanwha Group. (Yonhap)
The committee said there were no unresolved national security concerns with the deal, effectively recognizing the legitimacy of Hanwha’s acquisition bid, the South Korean group said.
Hanwha first purchased a 9.9 percent stake in Austal in March and has since sought approvals from both the Australian and U.S. governments to increase its holdings to 19.9 percent.
Headquartered in Australia, Austal is a global defense shipbuilder with major operations in the U.S., supplying vessels to the U.S. Navy.
Hanwha said it plans to leverage its shipbuilding capabilities to boost Austal’s global competitiveness while seeking to expand joint business opportunities in both the U.S. and Australian defense markets.
(Yonhap)
