In a massive move that could reshape the global steel landscape, a joint consortium comprising US-based Steel Dynamics Inc. and Australian conglomerate SGH Limited has launched a colossal takeover bid for Australia's largest steelmaker, BlueScope Steel Ltd. The offer, valued at a staggering A$13.14 billion (approximately $8.8 billion), underscores the intense strategic interest in North American steel assets.
The Details of the Blockbuster Offer
According to a statement released by BlueScope on Monday, the Sydney-based SGH Limited has proposed acquiring the company at A$30 per share. This price represents a significant premium of 23% over BlueScope's most recent closing price. The intricate plan involves SGH first acquiring BlueScope and then immediately selling its North American operations to Steel Dynamics, the American partner in the deal.
This bid is the latest in a series of consolidations within the strategically vital steel sector. BlueScope has long been considered a prime target, especially due to the scale and attractiveness of its North American business. This appeal has only grown since the Trump administration implemented protective tariffs on steel imports, shielding US producers.
Why BlueScope's North American Assets Are So Coveted
BlueScope's operations in North America are a crown jewel, contributing a substantial 45% of the company's total revenue, as noted in its 2025 annual report. The key asset is the North Star steel mill in Ohio, located just about 80 miles from an existing facility owned by Steel Dynamics. This geographic proximity makes it a highly logical and synergistic acquisition for the Indiana-based steelmaker.
Analysts at Citigroup Inc. noted that this transaction was anticipated. "This transaction is not a surprise — North American steel mills have eyed BlueScope’s North Star mill in Ohio as an attractive asset for a while," they wrote. "The challenge was separating the North American assets from the rest of the company." The current joint offer with SGH appears to be a crafted solution to this very problem.
A History of Rejected Approaches and Future Uncertainty
BlueScope's disclosure revealed that this is not the first approach it has received. The company had previously rebuffed multiple takeover attempts. Notably, a separate consortium led by Steel Dynamics itself made two bids in late 2024 at $27.50 and $29.00 per share.
Furthermore, in early 2025, Steel Dynamics presented another proposal to acquire the entire Australian steelmaker, keep the North American operations, and distribute the remaining assets to shareholders. That offer valued the North American business at $24.00 per share. BlueScope rejected all these advances, stating they "significantly undervalued BlueScope and its future prospects, and presented significant execution risk."
The market reaction was mixed; shares of Steel Dynamics fell by as much as 3% in New York following the news. BlueScope has confirmed it is considering the latest A$30 per share proposal, which is subject to numerous conditions, including crucial regulatory approvals. The world now watches to see if this third, richer offer will succeed where others failed, potentially creating a new powerhouse in the US Midwest steel industry.
