Australian media billionaire Kerry Stokes, in partnership with U.S.-based Steel Dynamics, has submitted an all-cash offer worth nearly $9 billion to acquire BlueScope, Australia’s largest steel producer, in a deal that would significantly expand Stokes’ industrial footprint.
The bidders said they plan to split the company along geographic lines, with Stokes’ SGH group taking control of the Australian operations, while Steel Dynamics would acquire the North American business. Steel Dynamics CEO Mark Millett said the transaction would complement the company’s existing operations and expand its domestic capabilities.
Following the announcement, BlueScope shares jumped about 21% to close at A$29.54, approaching the offer price of around A$30 per share, reflecting investor optimism that the deal will be completed.
The proposed acquisition is fully cash-funded, offering shareholders a swift exit, despite a recent decline in the company’s earnings as customers delayed orders amid uncertainty over U.S. tariffs.
BlueScope said it is currently reviewing the proposal, after previously rejecting three offers from Steel Dynamics or related groups, one of which was just one dollar below the current bid. The bidders also confirmed they would retain the company’s core management teams in Australia and North America if the deal proceeds, noting that the offer price could be increased ahead of final acceptance.
