BlueScope Board Rejects $8.8 Billion Steel Dynamics, SGH Bid
Decision Is Blow to SDI as It Seeks to Benefit From US Steel Tariffs
[Stay on top of transportation news: .]
BlueScope Steel Ltd. rejected the latest takeover approach from U.S. steelmaker Steel Dynamics Inc., arguing a $8.8 billion joint offer made with Australian conglomerate SGH Ltd. “very significantly” undervalued its assets.
The decision is a blow to the ambitions of Steel Dynamics, which had made several previous offers for BlueScope’s North American plants, as it seeks to benefit from steep tariffs imposed by the Trump administration to shield U.S. producers.
“This proposal was an attempt to take BlueScope from its shareholders on the cheap,” Chair Jane McAloon said in a statement on Jan. 7. “It drastically undervalued our world-class assets, our growth momentum, and our future — and the board will not let that happen.”
The board also cited a period of lower steel spreads in Asia as one of the reasons for refusing the offer.
Steel Dynamics and SGH — controlled by billionaire Kerry Stokes — offered A$30 ($20.2) per share for the Australian steelmaker. The U.S. buyer would have taken over the North American facilities and SGH would have retained the remainder if the takeover proposal had been accepted.
Johan Land of Samsara explores how fleets are adopting AI to revolutionize their safety programs.Tune in above or by going to .
Shares in Australia’s largest steelmaker closed at A$29.9 on Jan. 7 before the board issued its decision, having surged nearly 21% the previous day after the bid was announced.
BlueScope previously considered and unanimously turned down three separate unsolicited approaches, according to the statement.
In early 2025, Steel Dynamics had offered to acquire all of BlueScope, retain its North American operations, and distribute the non-North American assets to shareholders, valuing North America at A$24 per share, BlueScope said, adding that it had declined the offer for undervaluing its future prospects, with regulatory risks also flagged.
“This is the fourth time we’ve said no, and the answer remained the same — BlueScope is worth considerably more than what was on the table,” McAloon said.
Want more news? Listen to today's daily briefing above or go here for more info
BlueScope’s significant presence in North America means it has been viewed as a potential takeover target for some time. The operations there accounted for about 45% of its revenue in its 2025 financial year. The company owns a steel mill in Ohio, about 80 miles from a Steel Dynamics-owned operation, as well as a building products business.
U.S. mill consolidation would have increased if Steel Dynamics had been able to acquire BlueScope’s assets, KeyBanc Capital Markets analysts Philip Gibbs and Samuel McKinney wrote in a note after news of the bid.
“The Delta sheet mill is one of the lone standing high-quality, and non-union, U.S. carbon sheet assets yet to be acquired,” they said, referring to the Ohio facility.
