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BlueScope Steel (ASX:BSL) has received as many as three separate takeover approaches from U.S. steelmaker Steel Dynamics, the Australian steel giant told shareholders today, with each not offering quite enough value to bite on.
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This disclosure came after BlueScope fielded another recently, a $13 billion megadeal now helmed by Kerry Stokes’ business conglomerate, SGH Limited.
The deal is structured so that SGH would acquire all BlueScope’s shares – if the deal had been accepted – at $30 cash per share before they were then handed on to North American operator Steel Dynamics in a sales bundle.
This latest offer put BlueScope’s value at around 24% higher than its sharemarket value opening in CY26 (which itself ticked 1.3% higher Monday on sales whispers), but the steelmaker’s board didn’t like the play.
“The board of BlueScope, together with management and advisers, is considering and evaluating the indicative proposal,” the company wrote today.
BlueScope’s head honchos pointed out that there were several interesting conditions they were mulling over, and added that the other approaches from Steel Dynamics had “significantly undervalued” the Aussie company.
It doesn’t sound like Stokes and SGH are against coming up somewhat in price, though, with the conglomerate boss on Tuesday declaring that BlueScope’s Australian business will be “a strong strategic fit” for his U.S. steel partnership.
“We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders,” Mr Stokes explained.
Any accepted deal would see SGH add BlueScope’s local and Asia-Pacific operations to the fold. These include Caterpillar’s Down Under dealer, WesTrac, as well as equipment hiring company Coates, building products maker Boral, and meaningful chunks of both Beach Energy (ASX:BPT) and Seven West (ASX:SWM).
Steel Dynamics shareholders are hesitant on the latest public approach, it seems, with the steelmaker’s valuation in New York dropping -2.4% overnight. STLD shares are selling at $171.83/ea now that U.S. trade has closed.
As for BSL, it’s heading into Tuesday morning at $24.25/sh.
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