Steel Dynamics Jumps After Buyout Deal of BlueScope Metal With Australia’s SGH

• Both companies together have submitted a Non-Binding Indicative Offer (NBIO), together with Steel Dynamics, for SGH to acquire 100% of BlueScope Steel.
• If the deal is implemented SGH would on-sell BSL’s North American operations to Steel Dynamics. 
• In early 2025, Steel Dynamics had offered to acquire all of BlueScope and retain its North American operations. 

Shares of Steel Dynamics (STLD) jumped 2.5% in after-market hours after the Australian firm SGH confirmed that it has submitted a Non-Binding Indicative Offer (NBIO), together with Steel Dynamics, for SGH to acquire 100% of BlueScope Steel Ltd by way of a scheme of arrangement, in a deal that values Bluescope at $8.8 billion. 

If the Proposal is implemented and following the transaction close, SGH would on-sell BSL’s North American operations to Steel Dynamics, which include BSL’s North Star flat rolled steel mill and Building and coated products North America businesses, the statement said.  

Bluescope earlier in the day had confirmed that it has received an unsolicited, non-binding and indicative proposal on December 11 from an Australian and US consortium to acquire all of the shares in BlueScope by way of a scheme of arrangement at a price of A$30.00 ($19.92) cash per BlueScope share. 

The Consortium comprises SGH Limited and US-based Steel Dynamics, Bluescope said. It also said that in early 2025, Steel Dynamics had offered to acquire all of BlueScope, retain its North American operations, and distribute the non-North American assets to BlueScope shareholders, valuing North America assets at A$24.00 per share and asserting the value of the remaining assets to be at least $9.00 per share. 

Steel Tariffs

The deal comes at a time when the global steel sector is adjusting to the U.S. President Donald Trump’s 50% tariffs on steel imports. 

The tariffs have intensified concerns over global trade war and have forced U.S. companies to move production to the U.S. to safeguard themselves from tariffs. 

How Did Stocktwits Users React?

Retail sentiment around STLD remained in ‘neutral’ territory amid ‘normal’ message volumes. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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