A petroleum tanker stands while being built at the Aker Philadelphia Shipyard in Philadelphia, Pennsylvania, U.S. (Photographer: Bradley C. Bower/Bloomberg via Getty Images)

WASHINGTON — South Korea’s Hanwha Systems and its shipbuilding arm Hanwha Ocean have agreed to purchase Norwegian-owned Philly Shipyard in a deal valued at $100 million pending relevant regulatory approvals, according to a statement from Philly Shipyard today.

“After two decades of stewardship, it is with great honor that we transition the ownership from Aker to Hanwha,” said Kristian Røkke, chairman of Philly Shipyard ASA. “Recognized as a global leader, Hanwha brings a wealth of sophisticated shipbuilding experience that will enable Philly Shipyard to realize a grander vision for its employees and customers.”

Philly Shipyard, based in the eponymous city, sits at what was once the site of a US Navy facility. It was founded in 1997, best known for its work producing container vessels and tankers, and is a subsidiary of the Norwegian industrial investment group Aker.

The news of Hanwha’s acquisition comes as South Korean shipbuilding giants have taken a keen interest in American-based shipyards at the behest of Navy Secretary Carlos Del Toro who has eagerly encouraged as much.

Just this past April, Philly Shipyard signed a separate agreement with Hanwha competitor, South Korean shipbuilder HD Hyundai Heavy Industries to cooperate on various construction projects and maintenance work.

RELATED: South Korean shipbuilder HD Hyundai, Philly Shipyard ink agreement on construction, MRO

Earlier this year, Hanwha made a play to purchase the Australian shipbuilder Austal, which would include its Alabama-based facilities in Mobile, but the deal was rejected — at least for the time being, with both parties indicating they might reconsider down the road.

In its public statement rejecting Hanwha’s offer, Austal cited possible regulatory concerns in Washington and Canberra over the notion of the South Koreans taking ownership; Austal USA is a staple shipbuilder for the US Navy and has advanced several new projects since introducing steel facilities to its Alabama campuses. (In its own statements, Hanwha downplayed any concern about regulators quashing the deal.)

Philly Shipyard ostensibly does not have those same concerns and the new deal will give Hanwha a chance to test the waters with American regulators. If approvals are given, the deal could close in the fourth quarter of 2024.

“The transaction is subject to the satisfaction of certain customary conditions, including approval by CFIUS (Committee of Foreign Investments in the US) and other regulatory approvals being obtained as well as no material adverse event having occurred in relation to PSI [Philly Shipyard],” according to the company statement.

“In the event of cost overruns in excess of USD 100 million in current projects undertaken by PSI compared to the company’s current estimates, the parties have agreed principles to reduce the payable purchase price at closing. Except for certain transaction costs, the purchase price is not subject to any other adjustments,” the statement continued.