Steel Dynamics, SGH Raise BlueScope Steel Bid to $11 Billion

The sweetened bid values BlueScope’s equity at A$32.35 per share in cash, or A$34.00 including recently announced dividends. This marks a significant jump from the A$30.00-per-share offer rejected in December, which BlueScope dismissed as an undervaluation of its growth prospects and vast land holdings. Under the proposed structure, SGH would acquire BlueScope’s entire portfolio before offloading the North American assets—centered on the North Star mill in Ohio—to Indiana-based Steel Dynamics.

The Push for U.S. Capacity

For Steel Dynamics, the deal is primarily a play for the North Star facility, which produces roughly 4% of U.S. hot-rolled coil. Chief Executive Mark Millett has positioned his company as the "logical owner" of these assets, citing their proximity to existing operations and the Detroit automotive hub. The acquisition would allow Steel Dynamics to capitalize on a favorable trade environment where tariffs on foreign-made steel have recently doubled to 50%, incentivizing local manufacturing despite sluggish broader demand.

BlueScope, led by CEO Tania Archibald, is currently evaluating the proposal while maintaining a strong defensive position. The company recently reported a more-than-doubled first-half profit and initiated aggressive shareholder returns, including stock buybacks and increased dividends. While Archibald noted the company remains open to offers that deliver value, the board had previously valued its surplus land alone at up to A$2.8 billion, suggesting any successful deal must account for the firm’s recent capital investments and capacity expansions.