On a roll: Bluescope expects its strong performance to continue on the back of high global steel prices. Picture: Bloomberg
BlueScope Steel has firmly rejected a joint takeover offer worth $13 billion from the Stokes family’s SGH and the US-based Steel Dynamics. The Australian company, which is the largest steelmaker in the country, stated that the offer significantly undervalues its worth. In a decisive statement released on Wednesday evening, BlueScope emphasized that the $30-a-share cash proposal does not accurately reflect the company’s substantial assets and growth potential.
BlueScope’s chair, Jane McAloon, expressed strong disapproval, stating, “Let me be clear, this proposal was an attempt to take BlueScope from its shareholders on the cheap.” She further elaborated that the offer “drastically undervalued our world-class assets, our growth momentum, and our future – and the board will not let that happen.” This strong rebuttal indicates that any future attempts by the bidders will need to significantly adjust their offer to gain the board’s support.
The move by Steel Dynamics is not new; the company has previously attempted to engage BlueScope in buyout discussions since 2024. Their focus has been on acquiring BlueScope’s North Star steel business, which operates in North America. McAloon’s remarks reflected a notable frustration regarding the repeated overtures from Steel Dynamics, especially now that they are partnered with SGH, which has interests in various sectors including heavy equipment and building products.
“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 stated, emphasizing the company’s strong position in the market. The rejection serves as a clear signal that BlueScope is not willing to entertain undervalued offers for its operations, aiming instead to uphold its valuation based on its current and future prospects.
As the situation develops, market analysts will be watching closely to see if SGH and Steel Dynamics will revise their proposal, as BlueScope’s board remains steadfast in its commitment to protecting shareholder interests. The outcome of this engagement could have significant implications for the steel market both in Australia and internationally.
