BlueScope Steel has formally declined a revised takeover proposal from Steel Dynamics and SGH, concluding that the amended offer is insufficient for its directors to recommend the transaction to shareholders. The company said it would continue to engage in discussions if the bidding parties can satisfactorily address certain outstanding concerns.
Last week, Steel Dynamics and SGH submitted an enhanced bid that places BlueScope's equity value at roughly $11 billion. Alongside the increased price, the bidders indicated they would not raise their proposal further unless a competing bidder emerged.
The proposal represents a further escalation of a takeover effort by Indiana-based Steel Dynamics, which has pursued BlueScope with a sequence of offers - five in total - since late 2024. A key element of Steel Dynamics' interest is BlueScope's North American footprint, including a steel mill located in Delta, Ohio, an asset Steel Dynamics has specifically targeted amid increased U.S. demand for domestically produced steel driven by import tariffs.
Under the mechanics outlined by the bidders, SGH would acquire all of BlueScope's assets and subsequently sell the North American businesses to Steel Dynamics. BlueScope's board said the current revised offer does not yet satisfy the conditions necessary to recommend the bid to shareholders, while leaving open the possibility of renewed negotiations if the bidders can address the board's concerns.
The bidders' position that they would not further increase the offer unless a rival emerged frames the current round as a potentially final improvement from Steel Dynamics and SGH. BlueScope's statement did not detail the specific concerns that remain unresolved, and the company indicated only that discussions could continue if those issues are addressed by the suitors.
The renewed bid is part of an extended takeover campaign by Steel Dynamics, highlighting the strategic value the bidder places on BlueScope's North American assets. The outcome depends on whether the bidders alter their stance or if a competing proposal appears that changes the calculus for BlueScope's directors and shareholders.
Summary
BlueScope has rejected a revised takeover bid from Steel Dynamics and SGH that values the company at about $11 billion. The blue-chip Australian steelmaker said the improved offer does not meet the board's threshold for a recommendation, but it remains open to further talks if outstanding concerns are resolved. The proposal would have SGH acquire BlueScope and then divest the North American businesses to Steel Dynamics. Steel Dynamics has pursued BlueScope with multiple bids since late 2024.