US Navy Shipbuilder’s Stock Jumps in Sydney as Hanwha Buys Stake
This article is for subscribers only.
Shares of Australian shipbuilder Austal Ltd. climbed after a unit of Hanwha Aerospace Co. became a substantial shareholder of the US Navy contractor, as South Korea’s top defense firm attempts to bolster its foothold in America.
Austal’s stock closed 7.6% higher in Sydney on Tuesday after a subsidiary of Hanwha acquired a 9.9% stake in the firm and said it aspires to increase the holding to 19.9%. The stake purchase is aimed at strengthening strategic partnerships in the US and elsewhere amid the boom in the global defense and shipbuilding industries, Hanwha said in a statement.