Steel Dynamics, SGH Make $8.8 Billion Bid for BlueScope

(Bloomberg) — U.S. steelmaker Steel Dynamics Inc. and Australian holding company SGH Limited, BlueScope Steel Ltd. It made a joint A$13.14 billion (US$8.8 billion) takeover bid for the American company, helping it expand its presence in the midwestern states.

SGH Limited, a Sydney-based multi-industry company, has offered to buy Australia’s largest steel producer for A$30 per share (a 23% premium to the last closing price) before selling its North American assets to Steel Dynamics Inc, BlueScope said on Monday.

The takeover bid marks the latest move in a series of deals in the strategically important steel sector. BlueScope has long been seen as a potential takeover target given the scale of its North American operations, which has become a more attractive proposition since the Trump administration imposed high tariffs on steel to protect U.S. producers.

BlueScope’s North American operations accounted for approximately 45% of revenue in the company’s 2025 annual report. In Ohio, there is a steel mill as well as a building products business about 80 miles from the Steel Dynamics-owned operation.

“This transaction is no surprise; North American steel mills have viewed BlueScope’s North Star facility in Ohio as an attractive asset for some time,” analysts at Citigroup Inc said in a note on Monday. “The challenge was to separate the North American assets from the rest of the company.”

Steel Dynamics shares fell as much as 3% in New York on Monday.

BlueScope also said it had previously rejected multiple takeover approaches, including a separate consortium led by Steel Dynamics that made two bids in late 2024 at $27.50 and $29.00 per share.

Steel Dynamics, headquartered in Fort Wayne, Indiana, has proposed acquiring the entire Australian steelmaker in early 2025, maintaining its North American operations and distributing other assets to BlueScope shareholders. The offer valued the North American business at $24.00 per share and suggested the remaining assets would be valued at at least $9.00 per share, according to the statement.

“These approaches were rejected because they significantly underestimate BlueScope and its future prospects and present significant implementation risk of regulatory consequences,” the company said. According to the statement, BlueScope is evaluating the latest proposal, which is subject to several conditions as well as regulatory approval.

More stories like this available Bloomberg.com