Consortium Offers $30 Cash Per Share in BlueScope Takeover Proposal

A New Chapter in BlueScope’s Takeover Story

BlueScope Steel Limited has confirmed it received an unsolicited, non-binding indicative proposal from a consortium comprising Australian industrial player SGH Limited and US steelmaker Steel Dynamics, Inc. The offer values BlueScope shares at $30 cash each, representing a premium over previous bids and market prices. This latest approach revives takeover speculation around the ASX-listed steel giant, which has been the subject of multiple acquisition attempts in recent years.

The consortium’s plan involves SGH acquiring all BlueScope shares and subsequently selling BlueScope’s North American operations to Steel Dynamics. This structure reflects the strategic interests of both parties and highlights the complexity of the proposed transaction. However, the offer is laden with conditions, including exclusivity, comprehensive due diligence, unanimous endorsement from BlueScope’s Board, shareholder approval, and regulatory clearances in multiple jurisdictions.

Board’s Deliberate and Strategic Response

BlueScope’s Board, alongside management and external advisers UBS and Herbert Smith Freehills Kramer, is rigorously assessing the proposal. Their evaluation weighs the offer against the company’s intrinsic value, which is underpinned by a portfolio of high-quality assets, ongoing capital investments worth $2.3 billion aimed at sustainable earnings growth, and recent successful asset monetisations such as the West Dapto land transaction.

Importantly, the Board recalls rejecting three prior unsolicited offers from Steel Dynamics-led consortia in late 2024 and early 2025, which valued BlueScope shares between $24 and $29 but were deemed to undervalue the company and carry significant execution risks. This history suggests a cautious but open-minded approach to the current proposal, which offers a higher price but remains conditional and non-binding.

Market Implications and Next Steps

For investors, the proposal introduces both opportunity and uncertainty. The $30 per share price signals a potential premium, yet the multiple conditions and regulatory hurdles mean the deal is far from assured. BlueScope shareholders are advised to take no immediate action while the Board undertakes its thorough review. The company has committed to keeping the market informed in line with continuous disclosure obligations.

As the steel sector navigates evolving global dynamics and competitive pressures, this development underscores the strategic value of BlueScope’s assets and growth trajectory. The outcome of this proposal could reshape the company’s ownership and operational footprint, particularly in North America, with broader implications for the Australian materials sector.