By Kwanwoo Jun
Shares of Hanwha Group affiliates rallied after Australia greenlit the South Korean defense conglomerate's bid to raise its stake in Austal, an Australia-based global shipbuilder.
Hanwha Systems, a developer of military communications and surveillance equipment, rose as much as 14%, leading the rally in Hanwha stocks early Friday. It was last up 10% at 52,900 won, equivalent to $35.96, on course for the sharpest daily gain in more than a month.
Holding company Hanwha Corp. was last 3.4% higher, outperforming the benchmark Kospi's 1.1% gain.
Other Hanwha affiliates gained too, with aircraft-engine and howitzer maker Hanwha Aerospace adding 4.4% and shipbuilder Hanwha Ocean sitting 0.6% higher.
Earlier in the day, Australia's treasurer signed off on Hanwha's bid to raise its stake in Austal to 19.9% from 9.9%.
Treasurer Jim Chalmers said that Australia's Foreign Investment Review Board previously recommended not objecting to Hanwha's proposed stake increase, and that the South Korean group would remain a minority shareholder in Austal.
He said there would be limits on Hanwha's access to sensitive information and stringent criteria on any nominee the company proposes for Austal's board.
Austal has shipyards in the U.S., Australia, and Asia, and builds vessels for the U.S. and Australian militaries.
Earlier this year, Hanwha won approval from Washington for the stake increase.
The South Korean group had previously floated a proposal to acquire Austal in full. Hanwha in June claimed that the U.S. regulators had supported the idea.
Hanwha last year acquired Philly Shipyard in Philadelphia, as the U.S. and South Korea continue to deepen cooperation in shipbuilding.
Under a new trade agreement struck with Washington, Seoul pledged to invest $150 billion to help President Trump realize an ambitious plan to revive American shipbuilding.
Trump recently announced his support for South Korea's bid to build a nuclear-powered submarine. Washington has been increasingly turning to Asian military allies to enhance the U.S.'s shipbuilding industry and build up its naval fleet.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
December 11, 2025 21:43 ET (02:43 GMT)
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