South Korean shipbuilder Hanhwa Ocean said Thursday negotiations have been under way to take over Australian shipbuilder Austal as part of its bid to tap deeper into the global naval shipbuilding market. Hanwha Ocean, formerly known as Daewoo Shipbuilding and Marine Engineering, outlined its plan to acquire shipyards abroad to facilitate contracts for warships and maintenance, repair and overhaul (MRO) services in the United States, Canada, Poland and other markets. Regarding reports that Austal rejected Hanwha's takeover offer worth $662 million due to regulatory hurdles, Lee Yong-ook, the vice president of naval ship business, said the company has been negotiating with Austal but it has not specified a particular acquisition amount. "We have been tapping Austal's parent company in Australia. Talks have been under way, but they are expected to take a considerable time," Lee said during a press conference, without elaborating on the ongoing discussions. Headquartered in Australia, Austal generates a sign ificant portion of its revenue from its U.S. affiliate, which operates under a special security arrangement allowing it to work on sensitive U.S. defense programs despite foreign ownership. Additionally, Austal has affiliates in the Philippines and service centers in Singapore. Lee expressed optimism that deeper arms industry ties between South Korea and Australia would boost its bid to acquire the Australian shipyard. Australian Defense Minister Richard Marles said Wednesday his government does not have concerns over Hanwha's possible bid to acquire Austal. Marles said Canberra views Austal as a "strategic" shipbuilder and that security arrangements will have to be put in place in respect to sensitive technologies and intellectual property regardless of its future ownership. Source: Yonhap News Agency