Australia’s largest steelmaker, BlueScope Steel, is currently considering a substantial takeover bid from a consortium led by SGH, previously known as Seven Group Holdings. The consortium, which includes the US-based industrial metals company Steel Dynamics, has proposed an all-cash offer of $30 per share, valuing BlueScope at approximately $13 billion. This offer represents a premium over BlueScope’s closing share price of $24.45 on Monday.
Should the takeover succeed, the plan involves a strategic division of BlueScope’s assets. SGH intends to retain BlueScope’s Australian operations and its businesses in Asia, as well as in New Zealand and the Pacific Islands. Meanwhile, the North American operations, including the key North Star flat rolled steel mill and related businesses, would be sold to Steel Dynamics.
Ryan Stokes, CEO of SGH, expressed confidence in the acquisition, stating, “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.” He emphasized the potential to enhance outcomes for stakeholders through a disciplined operating model and capital allocation.
In support of this acquisition, Mark Millett, CEO of Steel Dynamics, expressed that the North American assets would integrate seamlessly with existing operations. The takeover offer is now under consideration by BlueScope, which informed its shareholders that it was approached by the consortium on December 12, 2023.
BlueScope has a history of rejecting unsolicited bids, having turned down three separate offers involving Steel Dynamics in 2024 and 2025. The company stated that these offers were declined due to significantly undervaluing its prospects and future potential.
As the situation develops, BlueScope’s response and the consortium’s plans will be closely monitored by stakeholders and market analysts alike. The outcome of this proposed acquisition could have significant implications for the Australian steel industry and the broader market dynamics.
