Australian shipbuilder Austal, whose Austal USA is headquartered in Mobile, rejected a $662 million takeover offer from Hanwha Ocean of South Korea, saying it likely would not receive regulatory approval.
“The Austal board, together with its advisers, has considered the Indicative proposal in detail and engaged with Hanwha in relation to whether the transaction described in the indicative proposal would obtain the relevant regulatory approvals in Australia and the USA to enable it to proceed,” Austal said in a statement Tuesday. “At present, Austal is not satisfied that these mandatory approvals would be secured, however, the company is open to further engagement if Hanwha is able to provide certainty on whether a transaction would be approved.”
Hanwha announced its takeover offer this week, saying it “brings important capabilities and investment that would support Austal’s business while aligning with government objectives in the U.S., Australia and South Korea.”
The company indicated it would grow Austal’s operations in the U.S. and Australia.
“Hanwha is growing its footprint in the defense and energy sectors in the U.S.,” said Danny O’Brien, president of corporate affairs for Hanwha. “The company is poised to bring decades of experience and innovation to the U.S. shipbuilding industry that will grow Austal’s operations while meeting the needs of the U.S. Navy and Coast Guard.”
The bid was for $1.02 billion Australian, which converts to about $662 million.
