SGH and Steel Dynamics bid $10.6 billion in a "final and best offer" to acquire BlueScope Steel

SGH Limited, controlled by media billionaire Kerry Stokes, together with U.S. steel producer Steel Dynamics, has raised its acquisition offer for Australian steelmaker BlueScope Steel to AUD 15 billion (approximately USD 10.62 billion), making a “final, best offer” to acquire the Australian steel company.

Shares of Melbourne-based BlueScope Steel surged as much as 5.5% in early trading, reaching AUD 29.55.

SGH and Steel Dynamics announced on Wednesday that they would acquire BlueScope shares at AUD 32.35 per share in an all-cash transaction. This offer, which excludes BlueScope’s recently announced dividend, is 8% higher than the previous AUD 30 per share bid that was rejected for being “undervalued.”

The new offer represents a 15.5% premium over BlueScope’s closing price of AUD 28.00 on Tuesday.

In a joint statement, the two parties said: “In the absence of a superior competing proposal for all or the core assets of BlueScope, this increased offer is the final, best offer from SGH and Steel Dynamics.”

BlueScope said it is “reviewing and assessing the proposal in light of the company’s fundamental value.”

BlueScope’s largest shareholder, AustralianSuper, which holds 13.52% of the company, did not immediately respond to a Reuters request for comment. Last month, the fund supported BlueScope’s rejection of the earlier offer, stating that it “significantly undervalued the company.”

On Wednesday, SGH and Steel Dynamics reaffirmed their plan to divide BlueScope’s operations by region: SGH would take over its Australian business, while Steel Dynamics would acquire the North American segment.

Indiana-based Steel Dynamics’ assets are located about 90 kilometers (50 miles) from BlueScope’s plant in Ohio.

This acquisition proposal was first made in December last year and represents Steel Dynamics’ latest attempt to acquire Australia’s largest steel company. Currently, the steel industry is facing the impact of tariffs imposed by U.S. President Trump on steel imports.

Editor: Wang Yongsheng