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Australia Clears Hanwha to Lift Austal Stake to 19.9% Under Tight Security Conditions

The move follows a lengthy FIRB review to protect sensitive shipbuilding technology.

Overview

  • The approval imposes limits on Hanwha’s access to and storage of sensitive information and sets strict criteria for any board nominees.
  • Hanwha is barred from raising its holding above 19.9 percent, keeping it as a minority investor in Austal.
  • The decision aligns with FIRB’s advice after more than 10 months of interagency national security scrutiny.
  • Japan had raised concerns about intellectual property linked to Austal’s planned work on Mogami-class frigates, and Australian officials say protections address those risks.
  • Austal paused share trading after the announcement, and Hanwha had previously secured U.S. CFIUS clearance to increase its stake.