BlueScope Board Rejects Takeover Offer from SGH–Steel Dynamics
Steel News | 2026-01-08 23:52:28
The board noted that the lengthy implementation timeline would reduce the effective value to shareholders, while transferring all upside potential to the consortium.
By Paul Ploumis
SEATTLE (Scrap Monster): BlueScope’s board has unanimously rejected an unsolicited takeover proposal from a consortium comprising SGH Limited and U.S.-based Steel Dynamics, citing significant undervaluation and excessive conditionality. The indicative, non-binding offer proposed acquiring all BlueScope shares via a scheme of arrangement at $30.00 per share in cash, adjusted for future dividends.
The board noted that the lengthy implementation timeline would reduce the effective value to shareholders, while transferring all upside potential to the consortium. The proposal was also subject to extensive conditions, including exclusive due diligence rights and the securing of substantial debt financing.
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BlueScope Chair Jane McAloon said the offer failed to reflect the company’s world-class assets, growth trajectory, and long-term earnings potential, marking the fourth time similar approaches have been rejected. She highlighted BlueScope’s strong track record since its FY2017 restructure, including $3.7 billion invested in growth projects, $3.8 billion returned to shareholders, and an average return on invested capital of 18 percent.
The board further emphasized upside from improving steel spreads, operational efficiencies, accelerated free cash generation, targeted earnings growth initiatives, and the monetisation of BlueScope’s extensive land portfolio over the long term outlook.
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Frequently Asked Questions
- Who made the takeover proposal to BlueScope?
A consortium of SGH Limited and U.S.-based Steel Dynamics submitted an unsolicited, non-binding proposal.
- What was the offer price per share?
The indicative offer proposed $30.00 per share in cash, adjusted for future dividends.
- Why did BlueScope reject the bid?
The board cited significant undervaluation, excessive conditionality, lengthy implementation timelines, and transfer of potential upside to the consortium.
