Australia Greenlights Korean Giant’s Expanded Stake in Naval Shipbuilder

The government will allow Hanwha to increase its shareholding in Austal, the nation’s sovereign shipbuilder, from 9.9 percent to 19.9 percent.

Australia's Defence Minister Richard Marles at the Hanwha Defence Australia headquarters in Geelong, announcing that the Commonwealth had signed an approximately $4 billion contract with the South Korean manufacturer for the delivery of 129 Redback Infantry Fighting Vehicles. Courtesy of Hanwha Defence Australia.

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.