Sydney, Feb 18, 2026, 17:41 (AEDT) — Trading wrapped up for the session; the market is now shut.
- BlueScope shares ended higher as the company said it’s weighing a new buyout proposal from SGH and Steel Dynamics.
- The stock’s still trading well below the cash offer. Merger-arb desks aren’t rushing in—caution lingers as the next session approaches.
BlueScope Steel Ltd jumped 2.6% to A$28.74 Wednesday. The Australian steel producer said it’s reviewing a fresh takeover proposal from SGH Ltd and U.S.-based Steel Dynamics. (Google)
Timing matters. BlueScope’s pushing bigger cash returns and showing off a steadier earnings pace, which leaves investors with a choice: accept a takeover payout, or stay on board with a company now generating more cash itself.
BlueScope said it received a non-binding, conditional cash bid valuing shares at A$32.35 apiece. Under the proposal, SGH would buy out BlueScope entirely, handing off the company’s North American business to Steel Dynamics.
The board says it’s weighing the offer price with BlueScope’s fundamentals, as well as the risk of getting a deal over the line and any attached conditions. It also flagged for investors that talks might not result in any agreement. For now, shareholders have been told to sit tight—no action needed.
Plenty of movement today. The stock traded between A$27.97 and A$29.67, yet closed stubbornly about 11% below the A$32.35 cash offer. That gap? Usually, it’s a sign that investors aren’t buying into the valuation, the structure of the deal, or perhaps some combination.
Joseph Koh at Blackwattle Investment Partners puts the odds at “more than 50% chance” the board rejects the bid again. But Wilson Asset Management’s John Ayoub sees the higher offer as “good enough to get a deal done”. RBC analysts? They see the mid-cycle value in the mid-A$30s—so even with a bump, the new bid may not cut it for the board, especially with BlueScope holding a land bank tagged at about A$2.8 billion. Deal structure hasn’t changed: SGH would take the Australian operations, Steel Dynamics the North American side, and that’s with U.S. tariffs on steel still hanging around. (Reuters)
BlueScope posted a first-half net profit after tax of A$391 million, with underlying EBIT at A$558 million. Excluding one-offs, that EBIT number got a boost—wider U.S. steel spreads, increased volumes, and firmer cost control all played a part. For the second half, the company is guiding underlying EBIT between A$620 million and A$700 million. Into calendar 2026, BlueScope set out plans to return A$3.00 per share: that’s a A$1.00 special dividend, an interim dividend of 65 cents, and a A$310 million buyback. CEO Tania Archibald called the results a “clear demonstration” of the group’s portfolio strength. (BlueScope)
But there are plenty of ways this could go sideways. Conditional, non-binding bids? They’re notorious for hiccups—due diligence can stall, funding might dry up, or regulators could step in. The board could also turn down the offer, saying the price doesn’t cut it versus other options. Plus, trying to split the company apart is a whole different challenge.
Traders are eyeing a mechanical trigger—ex-dividend trading starts Feb. 20, with the record date falling on Feb. 23 and payment due March 24. (BlueScope)
ASX:BSL faces the next session under a cloud of uncertainty. BlueScope could raise the stakes—possibly by formalizing its approach or revealing more details. Investors are also watching for any rival willing to beat the so-called “best and final” offer. It all unfolds as the stock’s Feb. 20 ex-dividend deadline looms this Friday.
