BlueScope Steel has formally rejected an unsolicited $8.8 billion takeover proposal from a consortium led by U.S.-based Steel Dynamics and Australia-based energy and media conglomerate SGH, saying the offer significantly undervalued the company and its future prospects.
The proposal, disclosed earlier this week, would have seen SGH acquire BlueScope at $30 per share before selling the company’s North American operations to Steel Dynamics and retaining BlueScope’s remaining international assets. After reviewing the offer, BlueScope’s board of directors unanimously declined the bid, stating that it “very significantly undervalued” the steelmaker.
The rejection marks the fourth approach by Steel Dynamics since late 2024 to acquire BlueScope’s North American businesses. Previous offers included bids of $27.50 and $29 per share for the entire company as part of a different consortium. In early 2025, Steel Dynamics also proposed acquiring all of BlueScope, retaining only its North American assets and selling the remaining businesses—valued at $9 per share—back to shareholders. All prior approaches were unanimously rejected by BlueScope’s board, which cited undervaluation and regulatory risks.
Under the latest proposal, ownership of BlueScope would have been split by geography. Steel Dynamics aimed to acquire BlueScope’s North American operations, including its flat-rolled steel mill in Ohio and U.S.-based businesses focused on metals recycling, coatings and building solutions. SGH, meanwhile, would have retained BlueScope’s international footprint across Asia, Australia, New Zealand and the Pacific Islands.
“Let me be clear – this proposal was an attempt to take BlueScope from its shareholders on the cheap,” Chair Jane McAloon said in a statement on Wednesday. “It drastically undervalued our world-class assets, our growth momentum, and our future – and the Board will not let that happen.”
BlueScope operates five businesses in North America and employs approximately 4,000 people in the region, according to the company. Its U.S. operations include a Midwest steel mill serving the automotive, construction, manufacturing and agriculture sectors, as well as a joint venture with Japan-based Nippon Steel operating on the West Coast.
Steel Dynamics has argued that BlueScope’s North American assets would be a strong strategic fit. “We believe the acquisition of BlueScope’s North American Assets will be highly complementary to our existing operations and further expands our capabilities domestically,” Steel Dynamics co-founder and CEO Mark Millett said in a statement on Tuesday.
The takeover interest comes as BlueScope faces near-term financial pressure. The company reported a decline in earnings for fiscal year 2025 amid weak demand and global economic uncertainty. Sales for the year ended in June totaled 16.3 billion Australian dollars ($10.9 billion), down 4% year over year. North America accounted for more than 40% of total sales.
Millett previously signaled Steel Dynamics’ appetite for acquisitions, indicating in October that the company would prioritize value-added, downstream opportunities over upstream or raw materials deals. He said the company would focus on “pull-through, volume type opportunities” that leverage its strengths, particularly in coating and painting.
Steel Dynamics and SGH have maintained that BlueScope’s North American operations are “not strategically compatible” with its businesses in Australia, Asia and other regions, and would perform better as standalone entities under new ownership.
Steel Dynamics is currently the largest metals recycler and the fourth-largest steel producer in North America. Its pursuit of BlueScope comes amid broader consolidation in the steel industry. In June, Nippon Steel completed its $14.9 billion acquisition of U.S. Steel, while Cleveland-Cliffs acquired Canada-based Stelco for $2.5 billion in late 2024. More recently, Steel Dynamics purchased the remaining 55% stake in Houston-based New Process Steel, further expanding its manufacturing footprint.
Despite continued interest from potential buyers, BlueScope has made clear that it intends to remain independent, signaling confidence in its asset base, strategic direction and long-term growth potential.
