Canberra unconcerned about Hanwha’s bid for Austal: Australia’s defense chief

Australian Deputy Prime Minister Richard Marles looks on during a joint press conference between Australia and the Republic of Korea in Melbourne, Australia, May 1. EPA Yonhap

Australia’s defense chief said on Wednesday his government has no concerns about Korean defense giant Hanwha Group’s bid to take over Australian shipbuilder Austal.

Defense Secretary Richard Marles made the comments after Austal reportedly rejected a takeover bid from the conglomerate’s shipbuilding unit Hanwha Ocean earlier this month, saying it was unlikely Australian and US regulators would approve it.

“Ultimately this is a matter for Austal, it is a private company,” he said after talks between the Korean and Australian foreign and defense ministers. “From the government’s perspective, we are not concerned about Hanwha going this way.”

Marles, who is also Deputy Prime Minister of Australia, noted that Canberra views Austal as a “strategic” shipbuilder and that safeguards must be put in place regarding sensitive technologies and intellectual property, regardless of Austal’s future.

“If something were to happen in relation to Hanwha, it would have to be managed in that context as well,” he said.

The comments come as Hanwha has expressed hope of acquiring Austal amid recently deepening ties between Korea and Australia in the arms industry.

In December, Hanwha Aerospace’s Australian subsidiary struck a $2.4 billion deal to sell 129 Redback infantry fighting vehicles to Australia.

It was Hanwha’s second export to Australia following a 2021 deal for K-9 self-propelled howitzers. (Yonhap)