MOBILE, Ala. — South Korean defense conglomerate Hanwha has made a preliminary offer of more than $1 billion to acquire Austal USA, the Mobile River shipbuilder that employs roughly 3,000 people and builds vessels for the U.S. Navy and Coast Guard.
Hanwha Defense USA, a subsidiary of Hanwha Aerospace headquartered in Arlington, Virginia, submitted a preliminary, non-binding proposal valuing Austal’s U.S. business between $1.05 billion and $1.2 billion on a cash-and-debt-free basis, according to disclosures Austal made to shareholders Tuesday, Aug. 11. The deal would be structured through the acquisition of Austal USA’s holding entities or a similar arrangement, and would cover Austal USA’s Mobile operations, its Navy and Coast Guard vessel contracts, and its submarine module work — while Austal retains its core Australia, Philippines and Vietnam operations.
“Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal’s U.S. business,” Hanwha Defense USA spokesman James Hewitt said in a statement. “Any deal will be contingent on due diligence that permits a thorough evaluation of Austal USA’s operations and financials, including newly disclosed information. Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States.”
Austal USA operates about 1.5 million square feet of indoor manufacturing space in Mobile and has expanded into steel shipbuilding and submarine work, including modules supporting the Virginia- and Columbia-class submarine programs. The company is also building a new 390,000-square-foot submarine module manufacturing facility in Mobile. Austal’s board has given Hanwha a four-week window, beginning Tuesday, to conduct due diligence, engage with the Department of War and the Navy and Coast Guard, and, if required, Australia’s Department of Defense, while progressing transaction documents.
The offer follows a sharp downturn in Austal’s financial outlook. The company disclosed it now expects a roughly $113 million loss for 2026, reversing earlier guidance of about $110 million in earnings, after talks with the Department of War over relief on troubled Navy steel-vessel contracts — including the Towing, Salvage and Rescue Ship, the Auxiliary Floating Dry Dock Medium and Landing Craft Utility programs — did not produce the accelerated relief Austal USA sought.
Hanwha has pursued Austal before. In 2024, Austal rejected a roughly $662 million offer from Hanwha Ocean for its entire Australian parent company, citing uncertainty that U.S. and Australian regulators would approve foreign ownership of a contractor with sensitive naval work. Hanwha subsequently acquired a minority stake in Austal, which Australian regulators later allowed to grow to as much as 19.9% under strict national-security conditions. The new proposal targets only Austal’s U.S. operations. Hanwha has also been expanding elsewhere in American shipbuilding, having acquired Philly Shipyard for $100 million in 2024 and announced a $5 billion plan to expand it.
Any transaction would still require negotiation and likely face significant regulatory review, including from the Committee on Foreign Investment in the United States, the Defense Counterintelligence and Security Agency, and under the Hart-Scott-Rodino Antitrust Improvements Act, given Austal USA’s work on sensitive Navy programs. The Mobile Area Chamber of Commerce said it does not comment on the ownership of “individual member companies” but noted Austal USA “has been a valued part of the Mobile business community for many years,” adding that its focus “remains on supporting the workforce and economic strength of this region.”