South Korean company’s bit the takeover Austral.

The Hanwha Group, a formidable industrial force in South Korea, has formally submitted an indicative offer to acquire Austal, a naval and commercial shipbuilder based in Western Australia, along with its global operations. This proposal is contingent upon thorough due diligence and approvals from the Foreign Investment Review Board (FIRB), which would empower Austal to tap into the expertise, capabilities, and business prospects associated with being part of Hanwha Group’s global network.

David Kim, the executive vice-president at Hanwha, underscored the company’s respect for the FIRB regulatory process while expressing confidence in obtaining approval for the transaction. He refuted claims that FIRB would reject Hanwha’s acquisition, stating, “There is no basis to suggest that FIRB would oppose Hanwha’s acquisition of the company.”

Hanwha dismissed recent media reports suggesting that the Australian government might block the sale of Austal due to its involvement in defence contracting, labelling such concerns as unfounded. With an already established presence in Australia, Hanwha envisions several benefits for Austal through this acquisition, asserting that its proposal aligns closely with the Australian government’s broader strategy to bolster the country’s defence industry and workforce.

Kim highlighted Hanwha’s prior success in securing FIRB approval for investments in Australia, citing the company’s track record as a contracted supplier of military vehicles and ammunition resupply vehicles. Additionally, Hanwha has made significant investments in a manufacturing facility in Geelong, which employs local workers.

The acquisition of Austal, according to Hanwha, would yield positive outcomes for various stakeholders, including governments, shareholders, employees, and local communities. The company is committed to navigating all necessary procedures to ensure a successful sale.