SGH confirms $8.8B buyout bid with Steel Dynamics for Bluescope Steel

In response to media speculation, SGH confirmed it has submitted a non-binding indicative offer, or NBIO, together with Steel Dynamics (STLD) for SGH to acquire 100% of BlueScope Steel (BLSFY) by way of a scheme of arrangement. If the proposal is implemented and following the transaction close, SGH would on-sell Bluescope Steel’s North American operations to Steel Dynamics, which include Bluescope Steel’s North Star Flat Rolled Steel Mill and Building and Coated Products North America businesses. SGH would retain the remaining Bluescope Steel “Australia + Rest of World” operations, including Australian Steel Products, Asia Coated Products, and New Zealand and Pacific Islands businesses. The proposal is to acquire Bluescope Steel’s shares for a wholly cash consideration of A$30.00, or $20.041, per share. The consideration represents a total equity value for Bluescope Steel of A$13.2B, or $8.8B. SGH and Steel Dynamics do not envisage any material obstacles in obtaining the relevant regulatory approvals required, which are customary for an acquisition of this nature. SGH and Steel Dynamics have also entered into a 12-month exclusivity agreement with each other and have committed significant resources to progress this transaction. In line with transactions of this nature, the proposal price will be reduced by the quantum of any cash dividends paid by Bluescope Steel to its shareholders after 12 December 2025. The proposal is subject to customary conditions, including completion of satisfactory due diligence, agreement of a binding scheme implementation deed, and receipt of relevant shareholder and regulatory approvals. SGH and Steel Dynamics note there is no certainty that the proposal will result in a transaction.