SGH and US partner lob joint $14 billion bid for BlueScope Steel

The Stokes family’s SGH industrial conglomerate has approached BlueScope Steel about a $14 billion takeover in partnership with a US group.

Bluescope late on Monday confirmed that SGH and US-based Steel Dynamics had lobbed a $30 per share cash bid to Bluescope’s board in the week before Christmas.

Bluescope said it was assessing the non-binding and indicative proposal adding that it had previously received three separate offers by Steel Dynamics since 2024.

SGH declined to comment but it is understood the company will update investors with a statement before the Australian Securities Exchange opens on Tuesday.

The proposed joint buyout provides for SGH to take control of BlueScope’s Australian operations, notably the Port Kembla steelworks in NSW, leaving the target’s North American business - its biggest earner - to Steel Dynamics.

The split will likely make it easier for the deal to win Foreign Investment Review Board approval given protracted concerns about hiving off more Australian manufacturing operations into foreign ownership.

Based in Indiana, Steel Dynamics is one of North America’s biggest steel producers and metal recyclers, turning over $US4.8b ($7.2b) alone in the September quarter.

Shares, in BlueScope, Australia’s biggest steel-maker, closed 1.3 per cent better at $23.45 on Monday, valuing the group at $10.7b.

Kerry Stokes’ private companies own 50.9 per cent of SGH, which is run by son Ryan Stokes and owns the WesTrac Caterpillar dealership, the Boral building products group and the Coates hire business.

Sydney-based SGH also holds 20 per cent of Southern Cross Media, which now owns West Australian Newspapers Holdings, the publisher of The West Australian and thewest.com.au after a merger with Seven West Media approved last month.

BlueScope generated nearly $7b of sales last financial year from 160 sites in Australia, North America, New Zealand, Asia and the Pacific Islands.

It is seeking to add to its network through a heavyweight consortium of global steelmakers that is bidding for Sanjeev Gupta’s failed Whyalla steelworks in South Australia.

BlueScope is confident that that it will benefit from higher prices and its US business, but blamed US President Donald Trump’s tariffs and a big writedown on its US metal coatings unit for a 90 per cent slump in net profit in the 2024-25 financial year.

Underperformance from BlueScope Coated Products, bought for $US500 million three years ago, triggered a $438.9m impairment charge. However, even without the writedown, underlying profit for the year halved to $420.8m.

Total net profit slumped to $83.8m from $805.7m.