BlueScope Steel rejects $8.8B bid: asset value and project lens for engineers
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
BlueScope has rejected an A$8.8 billion takeover bid from Steel Dynamics and SGH, which offered A$30 per share and proposed splitting the business, with Steel Dynamics taking North American operations and SGH retaining the rest. The board argued the offer undervalued assets including five North American businesses that delivered about 45% of FY2025 revenue, a steel mill in Ohio located roughly 130 km from a Steel Dynamics facility, and nearly 100 Australian sites generating A$6.95 billion in domestic sales. The decision comes amid 50% US steel import tariffs and BlueScope’s parallel interest in acquiring the Whyalla steelworks with partners Nippon Steel and Posco.
Technical Brief
- Bid was the fourth approach from Steel Dynamics since late 2024, indicating sustained acquisition pressure.
- Board explicitly argued current weak Asian steel spreads understate BlueScope’s long-term earnings capacity.
- Shares closed at A$29.90 immediately before the rejection, after a near 21% jump on bid news.
- BlueScope’s North American footprint includes BlueScope Recycling and a building products division alongside flat steel assets.
- Domestic Australian operations span close to 100 sites, underpinning supply chains for construction and manufacturing customers.
- Parallel discussions with Nippon Steel and Posco on acquiring the Whyalla steelworks signal continued upstream integration interest.
Our Take
With 45% of BlueScope’s revenue now coming from its North American operations, the rejected bid underscores how Australian-listed steel producers are increasingly being valued on their US footprint rather than domestic steel demand, a pattern echoed in other North America–linked Materials stories in our database.
The 130 km proximity between BlueScope’s Ohio mill and a Steel Dynamics facility suggests significant potential operating synergies in logistics and scrap/recycled feedstock flows, which may keep strategic interest in BlueScope’s US assets alive even if this particular A$30/share approach has been rebuffed.
In our coverage of Materials M&A, an 8.8 billion dollar offer for a vertically integrated steel player with close to 100 Australian sites and strong exposure to coal and iron ore is at the upper end of recent deal sizes, signalling that strategic buyers are prepared to pay up for secure, tariff-protected steel capacity in the United States.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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