Shares in Australia’s largest steelmaker, BlueScope, soared on Tuesday after SGH, the Kerry Stokes controlled conglomerate, confirmed a $13.2 billion takeover bid for the company.
According to an expert, BlueScope shares jumped more than 20% to $29.51 by late morning just shy of the $30‑per‑share cash offer.
A Bid That Would Split BlueScope’s Global Operations
Under the proposal, SGH (formerly Seven Group Holdings) would acquire BlueScope and then sell its North American operations which produce flat‑rolled and coated steel to its US partner in the bid, Steel Dynamics.
This marks the third attempt in two years by Steel Dynamics, the fourth‑largest steelmaker in the US, to take control of BlueScope’s North American assets.
A Premium Offer Above Analyst Expectations
The $30 offer price represents the most generous bid to date and sits well above the $2-$26 target range set by most analysts, according to Bloomberg data cited in the ABC report.
SGH Says BlueScope Is a Strategic Fit
In a statement to the ASX, SGH chief executive Ryan Stokes said BlueScope’s Australian operations are “a strong strategic fit” for the group, which already owns major industrial and construction‑related businesses including:
Boral: Australia’s largest construction materials supplier
WesTrac: Caterpillar dealer
Coates: industrial equipment hire
Beach Energy: 30% stake
Seven West Media: 40% stake, currently merging with Southern Cross Austereo
If successful, the takeover would reshape Australia’s steel and industrial landscape, separating BlueScope’s domestic and North American businesses under different owners.
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