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| (Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Hanwha Ocean’s acquisition of the Australian defense and shipbuilding company Austal has fallen through.
On the 25th, Hanwha Ocean announced that it has decided to terminate discussions with Austal’s management and board regarding the acquisition and has notified the other party of its decision.
Hanwha Ocean had been in continuous negotiations with Austal to push forward the acquisition but ultimately decided to halt the process due to failure to reach an agreement. A significant point of contention arose when Austal requested a $5 million (approximately 6.6 billion KRW) upfront fee before the due diligence process.
Hanwha Ocean reportedly decided to abandon the acquisition after considering the potential opportunity costs that could arise from paying the fee and conducting due diligence, only to eventually cancel the acquisition.
Earlier in April, Hanwha Group had proposed 1 billion Australian dollars (approximately 880 billion KRW) for the acquisition of Austal and had appointed UBS as its financial advisor.
Austal specializes in the design, construction, and support of defense and commercial vessels. The company produces naval ships, high-speed ferries, supply ships for offshore wind farms, and platforms for oil and gas industries.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
