BlueScope Steel has received an unsolicited indicative proposal valued at A$13.2bn from a consortium comprising Australian industrial group SGH and US-based Steel Dynamics.
The companies confirmed this development in response to media speculation.
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The proposed deal would see SGH acquire all of BlueScope’s shares at A$30 per share in cash through a scheme of arrangement.
SGH plans to retain BlueScope’s Australian, Asian, New Zealand and Pacific operations while selling the company’s North American businesses to Steel Dynamics.
Both SGH and Steel Dynamics said they have secured funding for the bid through existing cash reserves and debt facilities, without plans to raise additional equity.
The proposal price will be reduced by any dividends paid after 12 December 2025, the date the indicative offer was submitted.
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By GlobalDataBlueScope’s board said it is assessing the non-binding proposal in consultation with its advisers.
SGH and Steel Dynamics noted that there is no certainty the approach will result in a formal offer or completed transaction.
Previous attempts by consortia led by Steel Dynamics – offering up to A$29 per share – were rejected on grounds of valuation and execution risks.
The current proposal is being weighed alongside BlueScope’s assessment of its own growth initiatives, recent asset sales, ongoing capital investments and land development activities.
If completed, SGH would retain BlueScope’s Australia + Rest of World business lines, while Steel Dynamics would take over the North Star Flat Rolled Steel Mill, as well as the North American building and coated products divisions.
SGH has indicated it wants to ensure continuity by offering up to two board seats to current BlueScope directors for its retained businesses and by keeping management in place for both Australian and North American units.
Both SGH and Steel Dynamics stated they do not foresee significant regulatory hurdles for the deal but underlined that discussions remain ongoing and no binding agreement has been reached.
The companies will continue working through due diligence processes and have appointed a range of legal and financial advisers to support the transaction review.
SGH managing director and CEO Ryan Stokes said: “We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses.
“We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”
