BlueScope Rejects $30 Cash Offer, Citing $500M Growth Pipeline

BlueScope’s Rejection of the Takeover Bid

On 7 January 2026, BlueScope Steel Limited’s board announced a unanimous rejection of an unsolicited takeover proposal from a consortium comprising SGH Limited and Steel Dynamics, Inc. The offer valued BlueScope shares at $30.00 cash each, subject to deductions for future dividends and multiple conditions including exclusivity and securing significant debt financing. The board described the bid as highly opportunistic and significantly undervaluing the company’s intrinsic worth.

Why the Board Said No

Chair Jane McAloon was unequivocal in her assessment, stating the proposal failed to reflect BlueScope’s world-class assets, growth momentum, and future potential. The board emphasized that the effective value to shareholders would be less than the headline $30 per share once the conditions and timing were factored in. This marks the fourth time BlueScope has rebuffed offers from Steel Dynamics-led consortia, underscoring a consistent stance on protecting shareholder value.

BlueScope’s Strategic Strengths

BlueScope’s confidence is grounded in a robust portfolio of high-quality assets spanning Australia, New Zealand, Asia, and North America, including the best-in-class North Star mini-mill in the US. The company has invested over $3.7 billion in growth projects since 2017 and returned more than $3.8 billion to shareholders through dividends and buybacks. The board highlighted ongoing initiatives targeting $200 million in cost and productivity improvements in FY2026 and a $500 million per annum earnings uplift from growth investments by 2030.

Growth and Value Creation Outlook

BlueScope is also positioning to monetise a substantial 1,200-hectare land portfolio, with recent transactions implying a potential value of up to $2.8 billion over time. The company expects enhanced near-term cash generation from reduced capital expenditure and working capital releases. Additionally, if steel price spreads and foreign exchange rates revert to historical averages, BlueScope anticipates an EBIT uplift of $400 to $900 million annually relative to FY2025.

Leadership and Future Prospects

With incoming Managing Director and CEO Tania Archibald at the helm, the board expressed strong confidence in management’s ability to continue delivering superior shareholder returns. BlueScope’s multi-domestic strategy, premium brand portfolio, and disciplined financial management underpin its resilient business model and growth trajectory, positioning the company well against cyclical and market challenges.