Addis Ababa: South Korea’s Hanwha Group announced its receipt of approval from the U.S. government to acquire up to a 100 percent stake in Australia-based shipbuilding and defense firm Austal. This approval marks a significant step in Hanwha’s strategy to enhance its standing in the global defense sector.

According to Ethiopian News Agency, the approval from the Committee on Foreign Investment in the United States (CFIUS) enables Hanwha to elevate its current 9.9 percent stake in Austal to full ownership. Initially, Hanwha had applied for CFIUS approval for a 19.9 percent stake acquisition. CFIUS is tasked with evaluating the national security implications of foreign investments in U.S. companies, and Austal operates a significant U.S. naval shipyard.

The committee indicated that there were no outstanding national security issues with the acquisition, thereby affirming the validity of Hanwha’s acquisition efforts. Hanwha originally acquired a 9.9 percent stake in Austal in March and has since been securing approvals from both the Australian and U.S. governments to increase its holdings to 19.9 percent.

Austal, headquartered in Australia, is a renowned global defense shipbuilder with substantial operations in the U.S., where it provides vessels to the U.S. Navy. Hanwha intends to harness its shipbuilding expertise to enhance Austal’s global competitiveness and to explore joint business ventures in the U.S. and Australian defense markets.