Jan 6 (Reuters) – Australian conglomerate SGH, led by media billionaire Kerry Stokes, has made a A$13.15 billion ($8.83 billion) bid for BlueScope, aiming to broaden its industrial footprint and pushing the steelmaker’s shares to a 17-year high.
After the market close on Monday, BlueScope said both Sydney-listed SGH and U.S.-based Steel Dynamics had made a cash offer of A$30 apiece on December 12.
Shares of BlueScope Steel, Australia’s largest steelmaker, rose as much as 21.5% to A$29.710 on Tuesday, their highest level since October 3, 2008. The stock marked its biggest intraday percentage gain since February 12, 2016.
The takeover would involve SGH acquiring all of BlueScope’s shares before divesting its North American operations to Steel Dynamics, SGH and Steel Dynamics said in a joint statement.
Under the deal, SGH would also take control of BlueScope’s Australian operations along with Australian Steel Products, Asia Coated Products, and New Zealand and Pacific Islands businesses.
Both bidders want to split BlueScope’s operations, saying its Australian and North American businesses are “not strategically compatible” and would be worth more separately, according to the statement.
One of Australia’s wealthiest individuals, Stokes owns about 50% of SGH. Through SGH, Stokes controls Boral, one of the country’s largest integrated construction materials firm.
SGH also holds around a 30% stake in Beach Energy and owns about 40% of Seven West Media, one of Australia’s leading media firm.
Shares of SGH rose as much as 5.1% to A$48.880, hitting their highest levels since October 31, 2025.
($1 = 1.4896 Australian dollars)
(Reporting by Rajasik Mukherjee; Editing by Sherry Jacob-Phillips)
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