Shares in nation’s biggest steel maker hit 17-year high
BlueScope Steel shares rose to a 17-year high after Australia’s biggest steelmaker received a takeover bid from a consortium that includes an entity controlled by Kerry Stokes.
SGH, formerly known as Seven Group Holdings, has teamed up with US-based industrial metals group Steel Dynamics to offer $13.2 billion for the operator of the Port Kembla Steelworks.
BlueScope Steel shares rose 20.7 percent to $29.50 just before noon Tuesday, just short of the consortium’s $30-per-share cash offer.
BlueScope’s board is considering the non-binding proposal, which it describes as unsolicited and highly conditional.
BlueScope had turned down three previously unsolicited approaches from Steel Dynamics in the past year and a half; These included an approach that the US company claimed would generate at least $31 per share in revenue for BlueScope shareholders.
“These approaches were rejected because they significantly underestimate BlueScope and its future prospects,” the board said.
This latest non-binding offer involves the spin-off of BlueScope, with SGH transferring its North American operations to Steel Dynamics and retaining its Australian steel and Asian coated products and New Zealand and Pacific islands businesses.
“We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of delivering performance improvement in local industrial businesses,” said SGH CEO Ryan Stokes.
“We aim to strengthen our disciplined operating model and capital allocation approach to deliver better results to stakeholders.”
Steel Dynamics managing director Mark Millett said BlueScope’s North American assets, which include the North Star flat-rolled steel mill and construction and coated products businesses, will fit well into its existing operations.
SGH already owns construction materials group Boral, equipment rental company Coates and equipment retailer WesTrac, and has a 40.2 percent stake in television station owner Seven West Media.
Meanwhile, BlueScope is leading an international consortium to explore the possible acquisition of Whyalla Steelworks, which was placed into administration by the South Australian government in early 2025.
BlueScope has previously highlighted that its Whyalla assets include steel mills as well as iron ore mines and structural rails.
AAP is seeking comment from the Australian Trades Union.
BlueScope appointed UBS as its financial advisor and Herbert Smith Freehills Kramer as its legal advisor in evaluating the offer.
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