US EditionAustralia approves Hanwha's larger stake in Austal with strict conditions
Hanwha's stake in Austal capped at 19.9% with strict limits on sensitive data access and board roles to safeguard Australia's sovereign shipbuilding interests, Treasurer Chalmers said.
- On Dec 12, Federal Treasurer Jim Chalmers approved Hanwha's increased stake in Austal, permitting a capped 19.9 per cent holding and saying `It follows a thorough and robust process that took account of all the relevant economic, national security and other national interest issues.`
- The Foreign Investment Review Board spent more than 10 months scrutinising Hanwha's pitch after its 9.9 per cent stake purchase in March, while Japanese officials raised concerns to the Department of Defence earlier this year.
- The conditions require secure handling of sensitive data and narrow criteria for board nominations, plus a government mechanism to enable takeover of the Henderson shipyard if needed.
- Trading in Austal shares was paused on Friday morning as the Austal board said it will closely review partnership and board position requests and assess risks amid $20b in shipbuilding contracts.
- Austal generates almost 80 per cent of its revenue from the US, Hanwha secured U.S. Committee on Foreign Investment approval in June, and Austal's AUKUS and Mogami frigates at Henderson raise technology concerns.
15 Articles
15 Articles
Australia Greenlights Korean Giant’s Expanded Stake in Naval Shipbuilder
The government has announced it will not block a South Korean defence manufacturer’s bid to double its stake in an Australian-based shipbuilding company, but will impose “strict conditions” in response to Japanese concerns about the proposal. Defence giant Hanwha is seeking to increase its shareholding in Austal—a major Australian naval shipbuilder—from 9.9 percent to 19.9 percent. The South Korean public company was founded 73 years ago and rec…
Australia approves Hanwha's larger stake in Austal with strict conditions
SYDNEY, Dec 12 : Australia said on Friday it would not oppose a proposal by Korea's Hanwha to nearly double its stake in Australian shipbuilder Austal, but the deal will be constrained by strict conditions covering data access and security.Treasurer Jim Chalmers said the decision to allow the South Korean con
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