In a major shakeup for Australia's industrial landscape, SGH has publicly called on BlueScope Steel to accept a monumental joint takeover bid that would see the steel giant split between its Australian and North American operations.
The $13.2 Billion Proposal
SGH, backed by the Stokes family, and US-based Steel Dynamics submitted an indicative cash offer of $30 per share on December 12, 2025, valuing the total deal at approximately $13.2 billion. BlueScope confirmed it was considering the proposal late on Monday, January 5, 2026.
The core of the plan involves a strategic division. SGH would take ownership of BlueScope's Australian interests, most notably the iconic Port Kembla steelworks in New South Wales. Meanwhile, Steel Dynamics – North America's largest metals recycler and fourth-biggest steel producer – would assume control of BlueScope's North American businesses.
A Case for Separation
SGH argues that the two halves of BlueScope's empire are not strategically aligned. In a statement released on Tuesday, the company asserted that the Australian and North American divisions "are not strategically compatible and would benefit as stand-alone businesses under new ownership."
SGH Chief Executive Ryan Stokes pointed to his group's proven track record with Australian industrial assets, which includes the WesTrac Caterpillar franchise, Boral, and Coates Hire. "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," Mr Stokes said.
The bidders claim the offer represents a significant 33% premium to BlueScope's three-month volume-weighted average share price. The market reacted strongly, with BlueScope shares surging 20% to $29.39 when trading resumed on Tuesday morning, closely aligning with the proposed bid price.
BlueScope's Stance and Previous Approaches
BlueScope's board is currently evaluating the new offer but is also weighing the value it expects to create through its own current growth plans. The company stated it remains "committed to optimising value for its shareholders."
In its confirmation of the approach, BlueScope revealed this was not the first time it had been courted. The company disclosed it had received three previous buyout proposals from consortiums led by Steel Dynamics since 2024.
These included offers at $24 and $29 per share. The most recent, in early 2025, involved Steel Dynamics acquiring the entire company, keeping the North American operations, and spinning off the rest to shareholders. BlueScope rejected all prior approaches, stating they "significantly undervalued BlueScope and its future prospects" and carried substantial regulatory execution risk.
The outcome of this high-stakes corporate proposal will have profound implications for Australia's premier steelmaker and the future of its critical industrial assets.
