Hanwha Group is increasing its stake in Austal Limited from 9.9% to 19.9%, having received regulatory approval from the CFIUS in the United States.

Target Information

Hanwha Group is in the process of increasing its equity stake in Austal Limited from 9.9% to a strategic position of 19.9%. This move has met with a significant regulatory approval milestone in the United States, as the Committee on Foreign Investment in the United States (CFIUS) has granted Hanwha the clearance to obtain a shareholding of up to 100% in Austal. This marks a pivotal step for Hanwha, reinforcing its commitment to the defense sector.

Michael Coulter, the CEO and President of Hanwha Aerospace and Hanwha Global Defense, expressed appreciation for the CFIUS outcome, which reflects a favorable reception from various levels of the U.S. government. The CFIUS's statement indicated that there are no unresolved national security concerns, demonstrating U.S. governmental support of Hanwha's investment proposal.

Industry Overview

The defense industry in Australia is undergoing considerable transformation, with increased priority given to defense capabilities in the wake of evolving global security concerns. The Australian government is focusing on expanding it