Australia Approves Hanwha's Stake Increase in Austal With Conditions

Australia has approved South Korea's Hanwha increasing its stake in shipbuilder Austal to 19.9%. The approval comes with strict conditions regarding data access and security. The decision ensures the protection of national interests and follows a comprehensive review involving several governmental departments.

Australia announced on Friday that it will not oppose Hanwha's proposal to nearly double its investment in the Australian shipbuilder Austal. This decision, however, carries stringent conditions related to data access and security measures. Treasurer Jim Chalmers emphasized that this move would safeguard Austal's integrity and protect Australia's strategic interests.

Chalmers stated that the decision followed a detailed evaluation involving economic, national security, and other important aspects. The process included consultations with various agencies such as the Department of Defence and the Department of Foreign Affairs and Trade, ensuring a robust and well-informed outcome.

Financial specifics of the transaction remain undisclosed, but trading in Austal's shares was temporarily halted. Hanwha faces limitations on data access and board representation as part of the conditions. The announcement follows a recent collaboration agreement between Austal and ASC, a key player in the AUKUS defence pact.