Dive Brief:
- BlueScope Steel has rejected an $8.8 billion takeover bid from U.S.-based Steel Dynamics and Australia-based energy and media conglomerate SGH, the steel supplier said Wednesday.
- As part of the proposal released earlier this week, SGH offered to buy BlueScope for $30 per share, then sell the company’s North America operations to Steel Dynamics and retain the remaining international assets.
- After swift consideration, BlueScope’s board of directors unanimously refused the unsolicited bid, saying that it “very significantly undervalued” the company.
Dive Insight:
This marks the fourth time since late 2024 that Steel Dynamics has approached BlueScope to buy its North American businesses.
Previously, the company offered $27.50 and then $29 per share for all of BlueScope as part of a different consortium. In early 2025, it offered to acquire all of BlueScope, retain only its North American operations, then sell the remaining assets valued at $9 per share to the company’s shareholders.
BlueScope’s board of directors unanimously rejected all of Steel Dynamics’ advances, saying the company was significantly undervalued in the proposals and the bids presented regulatory risks.
The latest unsolicited bid would have ultimately split ownership of the company’s operations by region. Steel Dynamics sought to own BlueScope’s North America operations, including a flat rolled steel mill in Ohio and U.S. businesses focused on metals recycling, coatings and building solutions.
As part of the agreement, SGH would have retained BlueScope’s international operations across Asia, Australia, New Zealand and the Pacific Islands.
“Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap,” Chair Jane McAloon said in a statement Wednesday. “It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen.”
BlueScope Steel operates five businesses in North America and employs about 4,000 people, according to its website. Beyond its Midwest steel mill that services the automotive, construction, manufacturing and agriculture sectors, the company has a split-joint venture with Japan-based Nippon Steel that operates on the West Coast.
“We believe the acquisition of BlueScope’s North American Assets will be highly complementary to our existing operations and further expands our capabilities domestically,” Steel Dynamics co-founder and CEO Mark Millett said in a statement Tuesday.
BlueScope saw earnings decline in fiscal year 2025, hampered by weak demand and global uncertainty. The company reported sales of 16.3 billion Australian dollars ($10.9 billion) for the period that ended in June, down 4% from the previous year. The company’s North America businesses comprised more than 40% of sales.
In October, Millet hinted at the possibility of an upcoming merger or acquisition, saying that the company would steer away from raw materials and upstream deals and focus more on value-added, downstream opportunities, including manufacturing.
At the time, he said, Steel Dynamics would pursue “pull-through, volume type opportunities where we can either lever or exploit our core strengths” like it has done in the past, with a focus on coating and painting.
Steel Dynamics and SGH said they believe BlueScope Steel’s assets in North America are “not strategically compatible” with its operations in Australia, Asia and other parts of the world, and would benefit as standalone businesses under new ownership.
Steel Dynamics is recognized as the largest metals recycler and fourth largest steel producer in North America.
The region’s steel market is undergoing significant consolidation. In June, Nippon Steel completed its $14.9 billion acquisition of U.S. Steel. In late 2024, Cleveland-Cliffs acquired Canada-based Stelco for $2.5 billion, strengthening its flat-rolled operations. And Steel Dynamics last month purchased the remaining 55% ownership interest in Houston-based New Process Steel, expanding its manufacturing capabilities.
