SGH-Steel Dynamics eye BlueScope takeover
Australia’s BlueScope Steel has confirmed receiving an unsolicited takeover approach, responding to recent media speculation around a potential bid for the Australian steelmaker, Kallanish notes from an ASX filing.
In the 5 January statement, BlueScope Steel says it received a non-binding and indicative proposal on 12 December 2025 from an Australian-US consortium to acquire all BlueScope shares via a scheme of arrangement at AUD 30 ($20) per share in cash.
The consortium comprises SGH Limited and US-based steel producer Steel Dynamics. Under the proposal, SGH would acquire BlueScope in full and subsequently divest BlueScope’s North American operations to Steel Dynamics.
BlueScope says the indicative proposal is subject to multiple conditions, including exclusivity, due diligence, no material adverse change, unanimous board recommendation, shareholder approval, regulatory clearances, and the absence of further share buybacks. The proposal also includes highly conditional debt funding arrangements.
The BlueScope board, together with management and advisers, is currently evaluating the proposal against the company’s fundamental value, the steelmaker notes.
Key considerations include BlueScope’s resilient earnings base and expectations of rising cash flow as major capital projects conclude. As well as the AUD 2.3 billion ($1.54 billion) investment programme targeting an additional AUD 500 million/year in earnings by 2030, and the latent value of its 1,200-hectare land portfolio, highlighted by the recent West Dapto transaction.
The company also disclosed that it had previously rejected three separate unsolicited approaches. In late 2024, a Steel Dynamics-led consortium made offers at AUD 27.5 and AUD 29 per share for all of BlueScope.
While in early 2025 Steel Dynamics proposed a complex transaction that would have separated BlueScope’s North American at AUD 24 per share and distributed the non-North American assets to BlueScope shareholders at least AUD 9 per share.
BlueScope says these approaches materially undervalued the group and carried significant execution and regulatory risks. It emphasises that shareholders are not required to take any action at this stage.
The company has appointed UBS as financial adviser and Herbert Smith Freehills Kramer as legal adviser. It says it will continue to update the market in line with its disclosure obligations.
