SYDNEY, Jan 6, 2026, 16:58 AEDT — Market closed
- BlueScope Steel shares closed up 20.6% at A$29.48 after SGH and Steel Dynamics put forward a non-binding A$30-a-share takeover approach.
- BlueScope said the proposal is conditional on exclusivity and due diligence, among other hurdles, and the board is weighing it against “fundamental value”.
- Attention now shifts to any update on due diligence access and BlueScope’s half-year results on Feb. 16.
BlueScope Steel Limited (ASX:BSL) shares closed up 20.57% at A$29.48 on Tuesday after Australian conglomerate SGH and U.S. steelmaker Steel Dynamics confirmed an approach to buy the company for A$30 a share in cash. 1
The move pulled the stock to within about 1.7% of the indicative price, leaving traders to price the risk that talks fail — and the chance the bidders lift their offer. The last close before the rally was A$24.45. 2
The timing matters because BlueScope has been arguing its cash flow and earnings power are set to improve as capital spending peaks and cost initiatives flow through, even as steel demand remains sensitive to tariff uncertainty and order patterns. 3
BlueScope said it received the unsolicited “non-binding” proposal on Dec. 12 and that it would be pursued via a scheme of arrangement — a court-supervised takeover structure that typically requires a shareholder vote. Under the proposed carve-up, SGH would acquire all shares and then on-sell BlueScope’s North American businesses to Steel Dynamics. 3
In their joint statement, SGH and Steel Dynamics put the proposal’s equity value at about A$13.2 billion ($8.8 billion). They said the A$30 price would be adjusted down for any cash dividends paid after Dec. 12. 4
BlueScope said the proposal comes with a long list of conditions, including exclusivity and due diligence — the bidder’s detailed review of a company’s books — as well as a “no material adverse change” clause, meaning no major deterioration in the business before a deal completes. It also cited a requirement for unanimous board support, shareholder and regulatory approvals, and noted the proposal includes “highly conditional” debt funding support. 3
The company disclosed it had previously rejected three unsolicited approaches, including offers of A$27.50 and A$29 per share in late 2024, and a different structure in early 2025. BlueScope said those proposals materially undervalued the company and carried significant execution risk around regulatory outcomes. 3
Mark Gardner, chief executive at MPC Markets, called the latest approach “value-unlocking” but “highly conditional.” BlueScope traded between A$28.11 and A$29.86 on Tuesday, with about 4.78 million shares changing hands, while the S&P/ASX 200 index fell 0.52%. 5
A key risk for holders is that the proposal is not binding, and the conditions give both sides multiple off-ramps. If BlueScope refuses exclusivity, if due diligence throws up issues, or if financing and regulatory approvals prove harder than expected, the stock could retrace toward pre-bid levels. 3
