BlueScope assessing $13b takeover offer from Stokes group, US partner
Proposal includes 'highly conditional debt funding support'
SGH CEO Ryan Stokes says BlueScope’s Australian business is “a strong strategic fit”. Pics via BlueScope, SGH
BlueScope Steel has received an unsolicited takeover proposal that could have significant implications for one of the Illawarra’s largest employers and landholders.
On December 12, 2025, the steelmaker received a non-binding, indicative proposal from a consortium comprising SGH Limited and US-based Steel Dynamics, Inc. The proposal values BlueScope at $30 per share.
That is a near 27 per cent premium to BlueScope’s closing price on December 11 and almost 23 per cent higher than where the company was trading on Monday.
SGH Limited is billionaire Kerry Stokes’ business conglomerate (scroll down for graphic). The group also includes the Boral building materials business, WesTrac heavy machinery dealerships, and Coates Hire operations plus a major stake in oil and gas group Beach Energy. It recently merged with SevenWest Media.
In a statement Ryan Stokes, managing director and CEO of SGH said: “We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”
Under the proposal, SGH would acquire all BlueScope shares before on-selling the company’s North American operations to Steel Dynamics. The remaining businesses, including BlueScope’s Australian operations anchored at Port Kembla, would remain with SGH.
Subject to multiple condition
In a statement to the ASX, BlueScope’s board said it is assessing the proposal with management and external advisers. The offer is subject to multiple conditions, including exclusivity, due diligence, board and shareholder approval, regulatory clearances, and the absence of any material adverse change in the business. It also includes highly conditional debt funding support.
In its assessment, the board said it would measure the proposal against BlueScope’s underlying value, pointing to its portfolio of long-life assets, improving cash flow outlook, and a $2.3 billion investment program aimed at lifting earnings by an additional $500 million per year by 2030.
The board also highlighted the latent value of BlueScope’s extensive landholdings, including around 1200 hectares nationally, much of which is currently being rezoned or developed. Recent transactions, including land sales in West Dapto, were cited as evidence of this value.
BlueScope confirmed it has previously rejected three unsolicited approaches. In late 2024, a Steel Dynamics-led consortium made offers of $27.50 and later $29.00 per share, both of which were unanimously rejected. A separate proposal in early 2025 was also dismissed after the board concluded it undervalued the company and carried significant regulatory and execution risk.
“These approaches were rejected as they significantly undervalued BlueScope and its future prospects, and presented significant execution risk in relation to regulatory outcomes,” the company said in a statement.
BlueScope described the latest proposal as highly conditional.
Who is SGH Ltd?
SGH Ltd, formerly known as Seven Group Holdings, is a prominent diversified Australian investment company with a significant presence in the industrial services, energy, and media sectors. The provided sources outline the firm's evolution from the 1991 restructuring of Qintex into a market-leading conglomerate managed by the Stokes family.
As of late 2024, SGH operates as a diversified holding company centred around industrial services (100% ownership of WesTrac, Coates, Boral, and Allight); energy: (100% of SGH Energy, 30% of Beach Energy) and media (40.2% shareholding in Seven West Media)
Who is Steel Dynamics, Inc?
Steel Dynamics, Inc, is an American steel producer based in Fort Wayne, Indiana. With a production capacity of 13 million tons of steel, the company is the third largest producer of carbon steel products in the United States.
