A consortium comprising Australia’s SGH Ltd and U.S.-based Steel Dynamics has submitted a revised “best and final” all-cash takeover offer for BlueScope Steel, valuing the Australian steelmaker at approximately A$15 billion (around USD 10.6 billion).
Under the improved proposal, the consortium has offered A$32.35 per share in cash, excluding dividends. The revised bid represents a significant premium to BlueScope’s undisturbed share price prior to the initial approach.
The earlier offer of A$30 per share had been unanimously rejected by BlueScope’s board, which stated at the time that it materially undervalued the company. The new proposal remains conditional and non-binding. BlueScope’s board has said it will evaluate the offer in the context of the company’s intrinsic value, strategic position, and long-term growth prospects.
As outlined in the proposal, SGH would acquire all issued shares of BlueScope Steel. Following completion, Steel Dynamics would acquire BlueScope’s North American operations, while SGH would retain the remainder of the business. The structure reflects a strategic division of assets aligned with each party’s regional focus and operational strengths.
BlueScope has clarified that there is no certainty the revised proposal will result in a binding transaction. Shareholders have been advised that no action is required at this stage.
Shares of BlueScope rose following the announcement but continued to trade below the offer price, indicating investor caution regarding deal completion and regulatory approvals.
The proposed acquisition represents a major potential transaction in the global steel sector and could signal further consolidation activity within the industry, subject to board approval and customary regulatory clearances.
