Major South Korean shipbuilder Hanwha Ocean Co. said Wednesday its talks to acquire Australian shipbuilder Austal had fallen through. "We have decided to stop negotiations with Austal's management and board of directors as of today. We have also notified the other party of the decision," the South Korean company said in a regulatory filing. "We were unable to reach a reasonable agreement with its management and board of directors," Hanwha added. Hanwha Ocean, formerly known as Daewoo Shipbuilding and Marine Engineering, reportedly made a potential acquisition offer late last year, with multiple media outlets suggesting the proposal was valued at around AU$1.02 billion (US$701.7 million). The acquisition was believed to be part of Hanwha's strategy to secure contracts for warships and maintenance, repair and overhaul services in broader markets, including the United States. However, some reports indicated Austal rejected Hanwha's takeover bid due to regulatory challenges. Headquartered in Australia, A ustal generates a significant portion of its revenue from its U.S. affiliate, which operates under a special security arrangement allowing it to participate in sensitive U.S. defense programs despite foreign ownership. Any potential sale of Austal to a foreign firm would have required approval from Australia's Foreign Investment Review Board and the Committee on Foreign Investment in the U.S., among others. Source: Yonhap News Agency