BlueScope considers new takeover bid from Steel Dynamics and SGH

SGH and Steel Dynamics maintain plan to split Australian steel producer's assets

Australian steel producer BlueScope Steel is considering a new takeover bid from SGH and Steel Dynamics worth $11 billion, according to Bloomberg.

American steel company Steel Dynamics and Australian conglomerate SGH have announced a «best and final» offer, raising their bid to 32.35 Australian dollars per share (for a total value of 15 billion Australian dollars), according to a joint statement by the bidders. In January, BlueScope rejected an offer of 30 Australian dollars per share.

As noted in a separate statement by BlueScope, the board of directors will consider the offer in light of the company’s fundamental value. It unanimously rejected the consortium’s previous offer on the grounds that BlueScope was significantly undervalued.

Steel Dynamics and SGH plan to split BlueScope’s assets. The American company is targeting the North Star steel mill in Ohio and the North American processing business, while SGH is seeking control of the Australian steel mill in Port Kembla.

As a reminder, in December last year, Steel Dynamics lowered its profit forecast for the fourth quarter of 2025. The company’s steel production profitability for the period was expected to be significantly lower than the third quarter results due to lower average selling prices and lower sales volumes.