Hanwha Group, the Korean aerospace and defense conglomerate that submitted a $1 billion bid for ASX-listed Austal, has hired former coalition defense minister Christopher Pyne to step up its lobbying efforts in Canberra.
handstand
But Hanwha, in a statement released this week, rejected those suggestions, saying it was a credible bidder with long-term ambitions in Australia. He said Hanwha had extensive shipbuilding experience that would “expand Austal’s expansion potential. “
Hanwha acquired Daewoo Shipbuilding and Marine Engineering this year. Getty
“Hanwha believes that an acquisition of Austal would benefit many stakeholders, bringing together governments, shareholders, workers and communities, and plans to follow all the appropriate processes for a successful sale,” the company said.
Pyne was Minister of Defence in the Morrison government and Minister for Defence Industry when Malcolm Turnbull was Prime Minister. His firm has a list of top clients, including the Business Council, Google, and BGH Capital’s CyberCX. He also signed as a client to the Embassy of the United Arab Emirates in Canberra. .
Hanwha’s list of high-profile lobbyists also includes Peter Greenwood, staff leader to former Abbott and Howard minister Eric Abetz, among others, and Dale Walters, who in the past worked for BAE Systems and Austal.
The company also hired Carl Ungerer, according to a record kept through the Attorney General’s Office, and his company Horizon GR. Dr Ungerer, a long-serving diplomat and analyst at the Office of National Assessments before running for Simon Crean as national security adviser to the then Labour leader.
Defence Minister Richard Marles declined to comment when asked if Hanwha would be a compliant owner of Austal, the only major defence company indexed on the ASX. “Questions about this should be directed to Hanwha and Austal. It would not be appropriate for the Defense to comment,” the spokesperson said. Marles.
Jennifer Parker, an associate at the Australian National University’s School of National Security, said a full acquisition of Austal through Hanwha would “run counter to what the government has been for the last six months. “
“Sovereignty is a term that’s used, but it’s not well delineated,” said Parker, a former naval officer. “But you would say that if Hanwha bought Austal entirely, then it’s not an Australian shipbuilding company, so I think that could just be a problem. Australia wants a sovereign capability, but you define it, a shipbuilding capability. This allows us to have a certain level of control, which we need.
Last year’s Strategic Defence Review found that Australia wants a defence force focused on maritime and amphibious missions and armed with long-range strike weapons. New landing craft are known to be a priority and the Albanian government has ordered a secondary review of the Navy’s surface. fleet, which he says will be completed quickly.
Former treasurer Joe Hockey, who now runs the defence-focused advisory organisation Bondi Partners, has told the Australian Financial Review in the past: “Just as we went with a bowl of begging to offshore COVID pharmaceutical corporations and were thrown to the back of the queue, so too will we be left behind in terms of military-industrial capability in the event of conflict, unless we develop our own capabilities.
Others argue that a deal would be beneficial to Australia. Mark Stevens, who advises personal equity and other investment teams and specialises in defence, said the sale of Austal would be “hugely positive for Defence’s maritime capability and, more importantly, incredibly beneficial to the Australian defence industry”.
“Austal’s Henderson site wants a big injection of capital to bring it up to global standards,” he wrote in a LinkedIn post. “Austal’s board of directors and existing shareholders have shown no interest in this investment, so a new shareholder design that improves the quality of Austal’s underdesign and the quality of shipbuilding is welcome. “
Headquartered in Perth, Austal operates five shipyards in 4 countries, including the United States, Australia, the Philippines and Vietnam. It has major contracts with the U. S. Navy, adding one for the design and structure of surveillance vessels that can be worth up to $3. 2 billion ($4. 8 billion).
Hanwha’s bid for Austal comes at a time when the company is aggressively expanding into shipbuilding. Last year, it acquired a majority stake in Daewoo Shipbuilding.
Copy link
Copied
Copy link
Copied
Subscribe to give this item as a gift.
Gift five items to the user of the month of your choice when they subscribe.
Already a subscriber? Sign in
Keep track of topics, people, and what matters to you.
Retrieving the Items
The Daily Habit of Successful People