BlueScope Steel has firmly declined a $13 billion takeover offer from the Stokes family’s SGH and the U.S.-based Steel Dynamics. The Australian steelmaker stated that the proposed cash offer of $30 per share significantly undervalues the company. In a strong statement issued late on Wednesday, BlueScope’s board emphasized that the company’s worth is “considerably more” than what was proposed.
Chair Jane McAloon expressed clear discontent with the offer, describing it as an attempt to acquire BlueScope at a bargain price. “Let me be clear, this proposal was an attempt to take BlueScope from its shareholders on the cheap,” she stated, addressing investors. McAloon elaborated that the offer drastically undervalued BlueScope’s world-class assets, growth potential, and future prospects.
This rejection marks a continuation of unsuccessful negotiations between Steel Dynamics and BlueScope, dating back to 2024. Steel Dynamics has approached BlueScope three times previously, aiming to acquire its North Star steel business located in North America. With the latest offer, McAloon indicated her frustration that Steel Dynamics has returned for a fourth attempt, now in partnership with the SGH conglomerate, which also owns the WesTrac heavy equipment business, the Boral building products group, and the Coates industrial hire business.
“This is the fourth time we’ve said no, and the answer remains the same – BlueScope is worth considerably more than what was on the table,” McAloon reaffirmed. The board’s firm stance suggests that SGH and Steel Dynamics will need to significantly increase their offer if they hope to gain the support of BlueScope’s board.
As of now, the outcome of this potential acquisition remains uncertain, but BlueScope’s leadership is resolute in their belief of the company’s intrinsic value. Investors and market analysts will be closely monitoring the situation for any developments. The dialogue between BlueScope and its suitors is expected to continue, with the possibility of revised offers on the horizon.
