SGH and Steel Dynamics confirmed on 5 January that they had submitted a non-binding cash proposal of A$30.00 a share for BlueScope Steel, valuing the Australian steelmaker's equity at A$13.2bn (US$8.8bn).
Why SGH Ltd and Steel Dynamics, Inc. is buying BlueScope Steel Ltd
Under the proposal SGH would acquire all of BlueScope through a scheme of arrangement and keep Australian Steel Products, Asia Coated Products and the New Zealand and Pacific Islands businesses, while on-selling the North American operations, including the North Star flat-rolled mill in Ohio and the Buildings and Coated Products business, to Steel Dynamics. SGH said BlueScope's Australian business was a strong strategic fit, and Steel Dynamics said the North American assets would be an excellent fit with its own operations.
“We believe BlueScope's Australian business is a strong strategic fit for SGH.”
Deal terms and financing
The all-cash offer was to be funded from cash and available debt with no equity raising, and was to be reduced by any dividends paid after 12 December 2025. It represented a 27% premium to BlueScope's closing price of A$23.66 on 11 December. On 17 February the pair lifted the proposal to A$34.00 a share, or A$32.35 after dividends, about A$15bn in total, and called it best and final.
Regulatory approvals and timing
BlueScope's board unanimously rejected the first proposal on 7 January, with chair Jane McAloon saying it drastically undervalued the business and was the fourth approach the board had turned down. In late February the board also rejected the revised offer as insufficient to recommend a scheme, while leaving the door open to an improved proposal. No binding deal followed; in August SGH chief executive Ryan Stokes said the group remained on the hunt for acquisitions after the BlueScope bid.
Market context
The bid was one of the largest takeover approaches for an Australian company in early 2026. Steel Dynamics had previously made several approaches of its own for BlueScope, whose US North Star mill is one of the most profitable assets in its portfolio.
