Steel Dynamics raises BlueScope Steel bid to $11 billion
US steelmaker continues aggressive expansion strategy with fourth takeover attempt of Australian rival
Steel Dynamics has joined forces with Australian industrial group SGH Limited to submit a revised A$32.35 per share cash offer for BlueScope Steel, valuing the Australian steelmaker at approximately $11 billion. The new bid, announced Tuesday, marks a significant increase from the consortium's previous proposal of A$30 per share, which valued BlueScope at roughly $8.8 billion when submitted in December 2025.
Steel Dynamics shares rose 0.1% to $191.92 in afternoon trading, maintaining the stock's position well above its 50-day moving average of $177.79 and 200-day average of $147.71. The Fort Wayne-based steelmaker, which commands a market capitalization of $28.2 billion, has seen its shares surge nearly 88% over the past year, reflecting strong investor confidence in the company's performance and strategic direction.
Under the proposed transaction structure, SGH would acquire all of BlueScope's shares and subsequently sell BlueScope's North American operations to Steel Dynamics, while retaining the Australian company's businesses in Australia, Asia, New Zealand, and the Pacific Islands. This arrangement would allow Steel Dynamics to expand its North American footprint while giving SGH control of BlueScope's core Australian assets.
The latest offer represents the consortium's fourth approach to BlueScope since late 2024, following previous bids that were rejected by the Australian company's board. In January, BlueScope's directors unanimously rejected the earlier A$30 per share proposal, stating that the offer "very significantly undervalued" the company's assets and growth prospects. The board also cited concerns about regulatory risks associated with the transaction.
Steel Dynamics' aggressive pursuit of BlueScope comes as the company demonstrates robust operational performance. The steelmaker reported quarterly earnings growth of 35% year-over-year, with revenue increasing 14% over the same period. The company's trailing twelve-month revenue reached $18.18 billion, supported by strengthening steel prices and solid demand across key markets.
Analysts remain broadly optimistic about Steel Dynamics' prospects, with 10 of 13 analysts covering the stock rating it a buy or strong buy, while three recommend hold, according to market data. The consensus price target stands at $193.10, representing modest upside from current levels. Morgan Stanley recently raised its price objective to $194 from $173, maintaining an equal weight rating, while JPMorgan increased its target to $190 from $165 with a neutral rating.
The steel sector has attracted increased merger and acquisition activity as companies seek to consolidate operations and achieve greater scale amid global trade tensions and shifting demand patterns. Industry analysts note that the premium valuations being offered reflect a broader repricing of steelmaking assets, with producers seeking to secure capacity and geographic diversification in an uncertain economic environment.
Steel Dynamics, founded in 1993, has grown through a combination of strategic acquisitions and greenfield mill construction to become one of the largest steel producers and metal recyclers in the United States. The company's current bid for BlueScope's North American operations would significantly expand its geographic reach and production capacity in strategic markets.
BlueScope Steel, Australia's largest steelmaker, has not yet responded to the revised offer. The company's shares are listed on the Australian Securities Exchange, where they have traded higher in recent sessions on anticipation of an improved bid. Any successful transaction would require approval from BlueScope shareholders and clearance from regulatory authorities in both Australia and the United States.