SYDNEY — Australian conglomerate SGH Ltd and US-based Steel Dynamics Inc have lifted their joint bid for BlueScope Steel Ltd to A$15 billion (US$11 billion), in what they describe as their “best and final” offer for the Australian steelmaker.
The revised non-binding indicative offer values BlueScope at A$32.35 per share, up from an earlier proposal of A$28.35. The latest bid implies a 47% premium to BlueScope’s undisturbed share price prior to the initial approach, and a 56% premium to its 52-week volume-weighted average price, the bidders said in a statement.
The consideration is entirely in cash and represents a total equity value of A$15 billion for BlueScope, which has a market capitalisation of roughly A$10.6 billion.
Under the proposed structure, SGH would on-sell BlueScope’s North American operations to Steel Dynamics following the transaction’s close, while retaining the “Australia + Rest of World” businesses.
The revised proposal comes after months of speculation about consolidation in the global steel sector. SGH and SDI said they had submitted the increased bid to BlueScope’s board and were seeking engagement on due diligence and transaction documentation.
“The increased purchase price represents SGH and SDI’s best and final offer in the absence of a superior competing proposal for all or a material part of BSL,” the companies said.
BlueScope, Australia’s largest steelmaker, has not yet publicly responded to the revised bid.
SGH said the acquisition aligned with its capital allocation strategy and its track record of applying an operating model to improve performance. Steel Dynamics described the deal as “highly strategic” and complementary to its existing steel production, coating, metals recycling and building products platforms.
The offer remains non-binding and subject to customary conditions, including satisfactory due diligence, a binding scheme implementation deed, and shareholder and regulatory approvals. The bidders said they did not anticipate material obstacles in obtaining the necessary clearances.
SGH and SDI cautioned that discussions were ongoing and that there was no certainty the proposal would result in a transaction.
Daniel Levy, SGH’s head of investor relations, and David Lipschitz of Steel Dynamics were named as contact points for investor inquiries. Media inquiries are being handled by FTI Consulting.