Rival Bids Push Austal Stock Prices Up

Australian news outlet the West Australian reported September 2 that Florida-based  firm Wildcat Infrastructure had offered $1.35 billion for the U.S. portion of shipbuilder Austal’s business. The offer competed with South Korea’s Hanwha Group’s preliminary, non-binding offer that valued Austal’s U.S. operations at between $1.05 billion and $1.20 billion on a cash-free and debt-free basis. The Wall Street Journal began reporting on Hanwha’s bid for Austal USA in August.
The news pushed Austal’s stock price up 71 percent higher. Hanwha’s offer was subject to a four-week due diligence period. Last December, according to the Wall Street Journal, the Australian government approved a proposal by Hanwha to increase its ownership stake in Austal from 9.9 percent to 19.9 percent.
The rival proposals come as the United States is seeking to quickly ramp up its military and commercial shipbuilding capabilities, seeking foreign partnerships while it builds out its own capacity. Australia, too, said it wants to expand its naval surface fleet over a decade to its biggest size since World War II as geopolitical threats increase, to include 26 destroyers and frigates and 25 minor vessels.
With existing shipyards, a skilled workforce and defense relationships, Austal USA is among a small group of operators supporting Washington’s efforts. Austal offers shipbuilding in four countries, with five shipyards in Australia, the United States, the Philippines and Vietnam.
Hanwha, South Korea’s seventh-largest business conglomerate that includes one of its largest shipyards, completed its acquisition of a Philadelphia shipyard in December 2024, rapidly expanding and modernizing it. It has since delivered 30 commercial vessels to domestic customers, including Matson Navigation Company, Crowley Maritime, American Shipping Company, Sea River Maritime, Kinder Morgan and Great Lakes Dredge & Dock. Hanwha Philly also builds public-sector/government training and support ships in partnership with TOTE Services for the U.S. Maritime Administration, such as the National Security Multi-Mission Vessel series, including the State of Maine and Lone Star State.
Founded in 2010, Wildcat Infrastructure, a subsidiary and business sector of Wildcat Equity Partners, builds and acquires next-generation companies driven by the global demand for critical infrastructure, renewable energy, information, transport and water infrastructure.