Australia Lets Korea’s Hanwha Double Stake in Naval Shipbuilder

Australia will allow South Korea’s top defense firm Hanwha to roughly double its stake in shipbuilder Austal Ltd., Treasurer Jim Chalmers said after agreeing to a recommendation from the Foreign Investment Review Board.

“Hanwha would remain a minority shareholder under this proposal and cannot increase its shareholding above 19.9%,” Chalmers said in a statement on Friday. Prior to the decision Hanwha owned 9.9% of the firm, he said.

Austal is the biggest shipbuilder in Australia and also has substantial operations in the US that sells ships to the Navy and Coast Guard. Its American unit is based in Mobile, Alabama, ...