🌍 Global
6 January 2026
Australian steelmaker BlueScope Steel returned sharply to centre stage on Tuesday after its shares surged nearly 21% following confirmation of a non-binding indicative offer (NBIO) that could see the company acquired and split into regional businesses.
At the close of trade on 6 January 2026, BlueScope shares were trading at $29.58, up $5.13 on the day, valuing the company at close to $13 billion. The rally followed an ASX announcement confirming that SGH Ltd had partnered with Steel Dynamics Inc. to submit a proposal offering $30.00 per share in cash for 100% of BlueScope.
The offer represents one of the most significant industrial takeover approaches in recent Australian market history and has quickly reframed how investors are viewing BlueScope’s underlying assets.
Under the proposed structure, SGH would acquire BlueScope in full via a scheme of arrangement, before on-selling the North American operations to Steel Dynamics, a major US steel producer listed on NASDAQ.
SGH would retain BlueScope’s Australian and Rest of World businesses, including:
The North American assets to be sold to Steel Dynamics include:
The offer values BlueScope at $30.00 per share, representing:
Source: SGH Ltd ASX announcement, 6 January 2026
The scale of the price reaction reflects more than just takeover excitement. Investors appear to be responding to the strategic logic behind separating BlueScope’s geographically distinct businesses.
For years, analysts have argued that BlueScope’s Australian and North American operations face very different market dynamics, cost structures, and capital cycles. The proposed transaction effectively acknowledges that reality.
SGH and Steel Dynamics said the businesses are “not strategically compatible” under a single ownership structure and would perform better as standalone entities.
From an investor perspective, the deal crystallises value that the market may not have been fully pricing in.
SGH Managing Director and Chief Executive Officer Ryan Stokes described BlueScope’s domestic operations as a strong strategic fit.
“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,” Stokes said.
“We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”
Steel Dynamics Co-Founder, Chairman and Chief Executive Officer Mark Millett echoed that view from the US side of the transaction.
“We believe the acquisition of BlueScope’s North American assets will be highly complementary to our existing operations and further expands our capabilities domestically,” Millett said.
“The combination of BlueScope’s North American teams and assets with Steel Dynamics would be an excellent fit in every sense and create value for all stakeholders.”
Source: SGH Ltd ASX announcement, 6 January 2026
Both SGH and Steel Dynamics emphasised that the proposal would be funded through existing cash reserves and debt facilities, with no equity raising required.
The offer implies:
The proposal is subject to customary conditions including due diligence, regulatory approvals, and shareholder votes. There is no certainty at this stage that a binding offer will emerge.
Globally, steel markets are navigating a complicated environment marked by:
Steel Dynamics is one of North America’s largest metals recyclers, while SGH has a long track record in Australian industrial assets. The proposed split aligns with a broader trend of regionalising heavy industry rather than running sprawling global platforms.
For shareholders, the proposal provides:
The market’s response suggests investors see the offer as credible, even though it remains non-binding.
At $29.58, BlueScope shares are now trading just below the proposed $30 offer price, signalling cautious optimism rather than blind deal certainty.
The BlueScope rally also stood out against a broader Australian market that has been relatively subdued in early January.
Materials stocks have generally benefited from renewed interest in industrial assets, while investors continue to rotate toward companies with tangible cash flows and strategic relevance.
BlueScope’s 55.7% one-year return heading into 2026 already reflected improved sentiment, but Tuesday’s move marks a clear reset in expectations.
SGH has confirmed it will continue engaging with BlueScope’s board and has appointed Barrenjoey and Goldman Sachs as financial advisers, while Steel Dynamics is being advised by JP Morgan.
Any formal recommendation, revised pricing, or alternative bids will likely drive the next phase of share price movement.
For now, BlueScope Steel finds itself in a rare position: firmly in control of the narrative, with strategic value clearly back on the table.
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