The head of Australian defense shipbuilding group Austal stated that negotiations between Austal and Hanwha Group regarding a potential shareholding increase have made no progress to date. In December 2025, after rigorous review, Hanwha Group received approval from the Australian government to increase its stake in Austal to 19.9% (not exceeding 19.9%).
However, for several months, Hanwha Group has remained silent on further increasing its stake. South Korean media analysts suggest the main reason is that Hanwha Group is focused on bidding for a Canadian submarine project and has no time to address the Ausal equity issue.
Multiple foreign media outlets reported that Austal CEO Paddy Gregg publicly stated: “After Australian Treasurer Jim Chalmers approved Hanwha Group’s proposal to increase its stake in Austal from 9.9% to 19.9%, Austal has had almost no further communication with Hanwha Group… This is very unusual.”
As Hanwha Group has not yet initiated follow-up matters regarding its plan to increase its stake in Austal, Paddy Gregg stated, “Hanwha Group has solemnly indicated that it will consider nominating board candidates, but no specific discussions have yet begun.”
According to available information, Austal is an Australian defense shipbuilding group primarily responsible for building small surface vessels and logistics support ships for the U.S. Navy, holding a market share of 40% to 60%, ranking first in the industry. Austal has shipyards in Mobile, Alabama, and San Diego, California, and is one of the four core suppliers for U.S. warship construction and delivery. It also has shipyards in Australia, the Philippines and Vietnam.
It is worth noting that Hanwha Group’s painstaking acquisition of Austal is ultimately aimed at the US defense shipbuilding market and the MASGA shipbuilding cooperation project between South Korea and the US, rather than its local Australian business. Hanwha Group intends to combine Austal’s US naval vessel business with Hanwha Group’s global shipbuilding capabilities through the acquisition, thereby generating significant synergies.