Hanwha Group has offered $1.05 billion to $1.2 billion for Austal's U.S. operations, and the Australian shipbuilder has granted four weeks of due diligence as the South Korean conglomerate pushes deeper into the American defense market after buying Philly Shipyard in 2024. Austal USA builds vessels for the U.S. Navy and Coast Guard and generated 90% of the group's A$108.5 million pre-tax profit in fiscal 2025, though Austal said the unit is expected to post an operating earnings loss of A$175 million in 2026, leaving the group with an operating loss of A$113 million versus earnings of A$113.4 million a year earlier. The proposed transaction excludes Austal's operations in Australia, the Philippines and Vietnam, its Sydney-listed parent and its Strategic Shipbuilding Agreement with the Australian government. Austal shares rose nearly 13% after the announcement, while the ownership backdrop remains mixed: Australia approved Hanwha's move to 19.9% in December and Hanwha told Reuters it owns that stake, but LSEG data still showed a 9.9% holding and billionaire Andrew Forrest's private entity held 19.28%.