- Hanwha has dropped its bid to buy Australian shipbuilder Austal, a merger that would have had major implications for global military shipbuilding.
- The proposal, announced by both companies in September last year, would have seen the world’s 19th-largest defense contractor add the 80th-largest defense contractor to its portfolio.
In a filing with the South Korean regulatory authorities, Hanwha Ocean announced that it had halted negotiations to buy Austal, an Australian shipbuilder, reports the Korea Times.
Austal announced in April that it had turned down a takeover bid of A$1.02 Billion ($701,35 Million) because the Australian and U.S. regulatory authorities were unlikely to approve it due to its sensitive operations.
Hanwha Ocean is a part of South Korea’s seventh largest conglomerate, with assets of 80 trillion won (60.14bn dollars) spanning energy, defence, and financial industries. It has informed Austal’s board and management that it will cease all talks regarding the acquisition.
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Source: The Korea Times
