Hanwha Offers To Buy Austal

A South Korean company is proposing to pay more than $1 billion in cash for Austal USA in Mobile, AL.com reports. The news came at the same time Austal USA’s parent company, Austal Ltd., revealed that Austal USA would post a substantial financial loss for the year. Austal Ltd. filed a statement saying that difficulties with U.S. Navy contracts had caused a downward shift in Austal USA’s outlook, which was enough to change Austal Ltd.’s overall outlook for the fiscal year from an estimated profit of approximately $78 million to an estimated loss of approximately $80 million. Hanwha Defence USA, Inc. offered to acquire the business entities and operations of Austal USA for an indicative enterprise value of $1.05 billion to $1.2 billion. Austal Ltd. said its board and advisers have carefully assessed the proposal and determined that it merits further evaluation. Hanwha’s offer was contingent on a four-week examination of Austal USA. Hanwha already owns a 19.9% stake in Austal Ltd. Its holdings in the U.S. include Philly Shipyard, which it bought from a Norwegian company in 2024.