Canberra: Hanwha Group has received approval from the Australian government to acquire an additional stake in Australia-based shipbuilding and defense firm Austal, local media reported Friday. This move is part of Hanwha Group's broader strategy to expand its shipbuilding operations into Oceania and North America.

According to Yonhap News Agency, Australia's Treasurer Jim Chalmers announced that the Canberra government will allow Hanwha to increase its shareholdings in Austal from 9.9 percent to 19.9 percent. However, the Korean conglomerate, which operates across sectors like energy, defense, and finance, will not be permitted to raise its stake beyond the 19.9 percent threshold.

Austal, headquartered in Australia, is a prominent global defense shipbuilder with significant operations in the United States. It is known for supplying vessels to the U.S. Navy. Hanwha Group has been interested in acquiring Austal since early last year but faced a setback in April 2024 when its initial proposal was rejected by the Australian shipbuilder.

After acquiring a 9.9 percent stake in March through its affiliates Hanwha Aerospace Co. and Hanwha Systems Co., Hanwha sought approval from both Australian and U.S. authorities to increase its holdings by an additional 10 percentage points. The Korean company secured approval from the U.S. government in June for a potential full acquisition of Austal.

This development follows Hanwha's acquisition of Hanwha Philly Shipyard in the U.S. last year. Hanwha has expressed plans to utilize its shipbuilding capabilities to enhance Austal's global competitiveness and explore expanded joint business opportunities in the U.S. and Australian defense markets.

A spokesperson from Hanwha stated, "We respect the Australian government's decision and will make constant efforts to maintain smooth bilateral relations and create a mutually beneficial future."