SGH’s A$13.15 Billion BlueScope Bid Sparks Steel Sector Shake-Up and Share Price Surge

Australian conglomerate SGH, controlled by media billionaire Kerry Stokes, has launched a major A$13.15 billion (US$8.83 billion) takeover bid for BlueScope Steel, a move that could significantly reshape the steel and industrial landscape in Australia and North America. The offer, which values BlueScope at A$30 per share, has already pushed the steelmaker’s share price to its highest level in nearly 17 years, highlighting strong market confidence in the proposed deal.

BlueScope confirmed after market close on Monday that it had received identical cash offers from Sydney-listed SGH and U.S.-based Steel Dynamics on December 12. Following the announcement, BlueScope shares surged as much as 21.5% on Tuesday to A$29.71, marking their strongest intraday gain since 2016 and their highest price since October 2008. The rally underscores investor optimism about the potential breakup and revaluation of BlueScope’s global operations.

Under the proposed transaction structure, SGH would acquire all of BlueScope’s shares before divesting the company’s North American operations to Steel Dynamics. SGH would retain control of BlueScope’s Australian assets, including Australian Steel Products, Asia Coated Products, and its businesses in New Zealand and the Pacific Islands. Both bidders argue that BlueScope’s Australian and North American divisions are not strategically aligned and would deliver greater value if operated separately.

Kerry Stokes, one of Australia’s wealthiest business figures, owns approximately 50% of SGH and has extensive interests across construction materials, energy, and media. Through SGH, he controls Boral, holds a roughly 30% stake in Beach Energy, and owns about 40% of Seven West Media. The BlueScope bid is seen as a strategic move to deepen SGH’s industrial footprint and strengthen its position in the Australian manufacturing and infrastructure sectors.

Investor enthusiasm has not been limited to BlueScope. Shares of SGH climbed as much as 5.1% to A$48.88, reaching their highest level since late October 2025, reflecting market approval of the acquisition strategy and the potential long-term value creation from the deal.