Australian BlueScope Steel Limited has recently been the subject of three unsolicited takeover proposals, sparking hot competition for and towards the Australian steelmaker’s future. A Steel Dynamics consortium is far in the lead on the offers to purchase the business. This expanding ambition truly showcases the company’s massive footprint and diversified asset portfolio across North America.
The first two proposals from the Steel Dynamics-led consortium were download 23rej AU$27.50 and AU$29.00 per share, respectively. BlueScope balked at both offers. Their issues included the valuation and the execution risks related to regulatory outcomes.
“These approaches were rejected as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes.” – BlueScope
In early 2025, a third proposal was submitted by Steel Dynamics, which sought to acquire all of BlueScope outright. This detailed unsolicited bid aimed to maintain BlueScope’s North American business while funneling the other assets back to shareholders. Such strategic maneuvering highlights the consortium’s intent to consolidate and enhance the value of BlueScope’s existing operations.
On December 11, SGH and Steel Dynamics made their final push. Their offer was an all-cash one, at AU$30 per share for BlueScope. This new proposal provides a high premium of 26.8% over BlueScope’s closing price on that date. It represents a sizable 22.7% premium to the company’s last closing share price. BlueScope’s North American operations were valued at an even more astonishing AU$24 a share. They assigned at least AU$9 per share for valuing other assets.
AustralianSuper is now the largest shareholder, with a 12.51% stake in BlueScope. They didn’t engage at once to the under the radar takeover conversations that were happening after working hours.
The ongoing saga is one sign of the renewed commitment from the steel industry’s big players, which could dramatically alter the competitive landscape. With negotiations ongoing, BlueScope’s board will be under mounting pressure to weigh the merits of these offers and negotiate them, keeping an eye on shareholder value.