Hanwha Ocean Co., the world’s second-largest shipbuilder, said on Tuesday it had made a takeover bid for Austal and negotiated the price and terms of the proposed deal, reportedly worth $662 million, but the Australian defense shipbuilder abruptly rejected the offer.“We studied the relevant factors needed to obtain government’s approval for acquisition at the request of Austal and agreed to carry out on-site due diligence,” the South Korean company said in a regulatory filing.“But ahead of the scheduled date, we received a sudden notice of cancellation from Austal.” The remarks followed media reports that Austal turned down its acquisition offer.
Austal said in a statement on Tuesday that government approval is particularly relevant in relation to the proposal from Hanwha, given Austal's position as the designer and builder of defense vessels for the Australian and US navies, as well as ownership clauses associated with defense contracts.“At present, Austal is not satisfied that these mandatory approvals would be secured.
As a global defense group, Hanwha has a variety of product lines across several affiliates, and the combination with Austal is expected to further strengthen the international product competitiveness of existing ships," Yonhap quoted a Hanwha Ocean official as saying.
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