Multibillion-dollar deal sends steel maker stocks to 17-year high
Billionaire Kerry Stokes has teamed up with American industrial metals group Steel Dynamics to offer $13 billion for Australian giant BlueScope.
BlueScope Steel shares have surged to the highest level in 17 years after Australia’s largest steelmaker received a takeover offer by a consortium that includes a Kerry Stokes-controlled entity.
SGH, formerly known as Seven Group Holdings, has teamed up with the US-based industrial metals group Steel Dynamics to offer $13.2 billion for the Port Kembla Steelworks operator.
BlueScope Steel shares jumped 20.7 per cent to $29.50 just before midday on Tuesday to be just below the consortium’s $30 cash per share offer.
BlueScope’s board is considering the non-binding proposal, which it described as unsolicited and highly conditional.
BlueScope rebuffed three previous unsolicited approaches from Steel Dynamics over the past year and a half, including one the US company asserted would have resulted in proceeds of at least $31 per share for BlueScope shareholders.
“These approaches were rejected as they significantly undervalued BlueScope and its future prospects,” the board said.
This latest non-binding offer involves breaking up BlueScope, with SGH offloading the North American operations to Steel Dynamics while retaining the Australian steel and Asia coated products and the New Zealand and Pacific islands businesses.
“We believe BlueScope’s Australian business is a strong strategic fit for SGH, and we have a proven track record of driving performance improvement in domestic industrial businesses,” SGH chief executive Ryan Stokes said.
“We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”
Steel Dynamics chief executive Mark Millett said the North American assets, which include BlueScope’s North Star flat rolled steel mill and building and coated products businesses, would fit in well with its existing operations.
SGH already owns construction materials group Boral, equipment hire firm Coates and equipment dealer WesTrac, and has a 40.2 per cent stake in television station owner Seven West Media.
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BlueScope, meanwhile, is leading an international consortium to explore the possible acquisition of the Whyalla Steelworks, which was placed into administration by the South Australian government in early 2025.
BlueScope has previously highlighted that the Whyalla assets include iron ore mines and structural rail, as well as the steelworks.
AAP is seeking comment from the Australian Workers’ Union.
BlueScope has appointed UBS as its financial adviser and Herbert Smith Freehills Kramer as its legal adviser as it considers the offer.
