Korean shipbuilder Hanwha Ocean has made a bid for Australian yard group Austal, offering A$2.825 per share. However, Austal has raised concerns regarding the feasibility of the deal due to the numerous regulatory approvals required, given Austal’s involvement in naval vessel construction for Australia and the US.
Unsolicited Bid by Hanwha Ocean
- Hanwha Ocean, along with Daewoo Shipbuilding & Marine Engineering (DSME), has submitted an unsolicited bid of A$2.825 per share for Austal, highlighting potential interest in acquiring the Australian yard group.
Challenges in Regulatory Approvals
- Australia has identified significant hurdles in obtaining necessary approvals for the proposed deal, including clearance from Australia’s Foreign Investment Review Board (FIRB), the Committee on Foreign Investment in the United States (CFIUS), and the US Defense Counterintelligence and Security Agency. These regulatory requirements pose challenges given Australia’s role as a naval vessel builder for both countries.
Concerns and Considerations by Austal
- Despite the bid from Hanwha Ocean, Austal remains cautious due to uncertainties surrounding regulatory approvals. Austal’s board and advisors are evaluating the proposal, emphasizing the need for clarity and certainty regarding the feasibility of the transaction before further engagement.
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Source: Seatrade Maritime
