Steel Dynamics Inc. (STLD) and Australian conglomerate Seven Group Holdings (SGH) announced a non‑binding indicative offer on January 5 2026 to acquire BlueScope Steel Ltd.’s North American operations, including the North Star steel mill in Ohio and associated flat‑rolled and coated product businesses. The proposal values the transaction at approximately $8.8 billion, with SGH retaining BlueScope’s Australian and international businesses while divesting the U.S. assets to STLD.
BlueScope’s financial performance has been in decline, with FY2025 underlying EBIT falling to $738.2 million from $1.1 billion in FY2024, and net profit after tax shrinking to $83.8 million from $1.1 billion. Earnings per share dropped to AU$0.17 versus AU$1.80 in FY2024, and the BlueScope Coated Products segment recorded a loss and a $438.9 million impairment of goodwill and intangible assets. The North Star mill, which accounts for roughly 4 % of U.S. hot‑rolled coil production, operates with electric‑arc‑furnace technology that is lower‑emission and highly efficient.
STLD’s recent results show a resilient business model: Q3 2025 net sales reached $4.8 billion and net income was $404 million, or $2.74 per diluted share, compared with $299 million and $2.01 per diluted share in Q2 2025. Over the nine months to September 30 2025, STLD generated $13.8 billion in sales and $920 million in net income, or $6.17 per diluted share, versus $13.7 billion and $1.3 billion in the same period in 2024. These figures illustrate STLD’s ability to maintain profitability while expanding its electric‑arc‑furnace and aluminum flat‑rolled platforms.
The strategic rationale behind the deal is clear: acquiring BlueScope’s mature, high‑utilization North Star mill would complement STLD’s existing EAF mills and broaden its flat‑rolled and coated product offerings. The geographic proximity of North Star to STLD’s Butler mill in Indiana is expected to generate operational and commercial synergies, particularly in automotive and construction markets. Mark D. Millett, STLD’s CEO, said the transaction would be “highly complementary to our existing operations and further expands our capabilities domestically.”
The offer is all‑cash at A$30 per share, representing a 27 % premium to BlueScope’s closing price and a 22.7 % premium to its Monday close. The proposal is non‑binding and subject to a 12‑month exclusivity agreement, regulatory approvals, and due‑diligence reviews. BlueScope’s board has previously rejected three unsolicited takeover approaches, including two from a Steel Dynamics‑led consortium in late 2024, citing undervaluation and execution risks. The current offer’s higher premium and the strategic fit have led investors to view the proposal favorably, reflecting confidence in the value‑unlocking potential of the transaction.
The deal aligns with a broader trend of consolidation in the North American steel industry, driven by the need for scale, modernization, and supply‑chain strength. By adding BlueScope’s North American assets, STLD would become a more diversified metals producer with expanded capacity and a broader customer base in the United States, positioning it to better navigate market volatility and decarbonization pressures.
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