BlueScope confirms takeover bid by SGH and Steel Dynamics
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More news: Responding to media speculation on Monday evening, BlueScope Steel confirmed via an ASX announcement that it received an unsolicited, non-binding indicative proposal from an Australian and US consortium to acquire all shares in BlueScope on 12 December 2025.
BlueScope said that the Consortium, comprising of the Stokes’ family’s SGH Limited and US steelmaker Steel Dynamics, would see SGH acquire all of BlueScope’s shares at a price of $30 per share, and then on-sell BlueScope’s North American businesses to Steel Dynamics.
BlueScope said that the proposal remains subject to a number of conditions and includes highly conditional debt funding support. BlueScope said its board is evaluating the proposal.
The company added that it has previously considered and rejected three separate unsolicited takeover offers, including by a different Steel Dynamics-led consortium which in 2024 offered $27.50 and then $29 per share for BlueScope. In 2025, Steel Dynamics again approached BlueScope with a deal valuing the North American business at $24 per share.
BlueScope said: "These approaches were rejected as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes."
BlueScope has appointed UBS as financial adviser and Herbert Smith Freehills Kramer as legal adviser.
SGH teams with US partner to launch BlueScope takeover bid
The news: SGH Limited has teamed with US partner, Steel Dynamics, to make a joint takeover offer for Australian steelmaker, BlueScope Steel, according to media reports.
The numbers: The all-cash offer for the $10.7 billion BlueScope was submitted in December, according to The Australian, which reported that any offer would have been made at around $30 per share cash, marking a 30% premium to its current price.
The context: The deal would see SGH take control of the Australian business, including Port Kembla steelworks, while Steel Dynamics would acquire the North American business and steel supplier North Star.
SGH owns the Boral building materials business, WesTrac heavy machinery dealership and Coates as well as a 30% stake in Beach Energy. The Stokes family owns 50.9% of SGH.
BlueScope Steel’s board is yet to disclose the approach but is expected to update the market on Tuesday. BlueScope has sought advice from bankers at UBS, sources told the AFR, while SGH has engaged Goldman Sachs and Barrenjoey. Steel Dynamics is being advised by JPMorgan.
The sources: The Australian, AFR, The West Australian, ASX
