Hanwha Offers to Buy Builder of U.S. Navy Ships
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South Korea’s Hanwha has made a nonbinding offer valued at more than $1 billion to buy Austal USA, a builder of ships and submarine parts for the U.S. Navy.
Australian shipbuilder and defense contractor Austal said the potential deal for its U.S. subsidiary is valued at between $1.05 billion and $1.2 billion. The WSJ Logistics Report’s Paul Berger writes that the acquisition would provide Hanwha with Austal’s Mobile, Ala., shipyard and access to major contracts that include some of America’s most sensitive naval programs.
The yard in Mobile specializes in building ships for the U.S. Coast Guard and Navy. It also supplies submarine modules to General Dynamics Electric Boat for the construction of Virginia‑ and Columbia‑class submarines. Austal USA employs about 3,500 workers and includes other assets such as repair facilities in San Diego, Calif.
Hanwha is seeking to grow its commercial and military shipbuilding ambitions in the U.S. as President Trump is trying to revitalize domestic shipbuilding.