Company: BLUWU
Filing Date: 2025-03-28
Form Type: CORRESP
Source: 0001641172-25-001412
Chunk: 2

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-03-28
Form: CORRESP
Chunk 2
---
 as an advisor or otherwise in connection with your initial business combination and certain     
 other transactions and pay your sponsor or an affiliate of your sponsor a salary or fee in an amount that constitutes a market standard 
 for comparable transactions, as described on page 35.                                                                                   |

Response:In response to the Staff’s comment, the Company has revised the disclosure on the cover page and on pages 11 and 112 of the Amended Registration Statement.

The Offering

Founder shares, page 18

| 5. | We                                                                                                                                          
 note disclosure on page 19 and elsewhere in the filing that if the non-managing sponsor investors purchase all of the units for which       
 they have expressed interest or otherwise hold a substantial number of units, then they will potentially have different interests           
 than other public shareholders. Please revise to clarify that regardless of the number of units they purchase, non-managing sponsor         
 investors will have different interests than other public shareholders in that they will be incentivized to vote for a business combination 
 due to their indirect interest in founder shares and private warrants.                                                                      |

Response:In response to the Staff’s comment, the Company has revised the disclosure on pages 19, 26, 30, 121, 125, 144 and 149 of the Amended Registration Statement.

Risk Factors, page 42

| 6. | Please                                                                                                                             
 include a risk factor that describes the potential material effect on your shareholders of the stock buyback excise tax enacted as 
 part of the Inflation Reduction Act in August 2022. If applicable, include in your disclosure that the excise tax could reduce the 
 trust account funds available to pay redemptions or that are available to the combined company following a de-SPAC. Also describe, 
 if applicable, the risk that if existing SPAC investors elect to redeem their shares such that their redemptions would subject the 
 SPAC to the stock buyback excise tax, the remaining shareholders that did not elect to redeem may economically bear the impact of  
 the excise tax. Further, please revise your disclosure, as appropriate, to clarify if the interest you withdraw to pay taxes may   
 be used to pay the excise tax if it were imposed.                                                                                  |

Response: In response to the Staff’s comment, the Company has revised the disclosure on page 50 of the Amended Registration Statement.

Notes to Financial Statements, page F-7

| 7. | Please                                                                                                                            
 tell us how you have complied with the reportable segment disclosure requirements