How Trump's tariff chaos put BlueScope Steel in play
Trump's aggressive tariffs ultimately led to the spurned $13 billion bid for BlueScope Steel. But an improved offer or a rival bid could see the price tag rise higher.
US President Donald Trump’s aggressive tariff moves, which began shortly after he returned to office last January, shocked the world. Now nearly a year on, BlueScope Steel has emerged as one of the biggest Australian beneficiaries from that chaos, batting away a $13 billion takeover approach that analysts and investors believe could merely be a prelude to a higher offer, or even a bidding war.
On Wednesday evening, the country's largest steelmaker formally rejected the $30-per-share cash offer from Ryan Stokes' SGH and US-based Steel Dynamics, describing the move as “highly opportunistic” and arguing that it significantly undervalued the company.
“This is the fourth time we've said no, and the answer remained the same — BlueScope is worth considerably more than what was on the table,” BlueScope chair Jane McAloon said in a statement to the ASX. BlueScope is being advised by UBS banker Kelvin Barry, and Herbert Smith Freehills Kramer.
Macquarie analyst Peter Steyn believes the takeover approach could be the start of a “drawn-out process”, while one market observer of the deal said any offer may need to rise to $33 per share to be successful.
