BlueScope Steel Exploring Acquisition Options for U.S. Expansion Instead of Building New Facilities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy BSL?
Source: WSJ
BlueScope Steel's Consideration: BlueScope Steel is contemplating the acquisition of a midstream U.S. steelmaking operation prior to deciding on a delayed $1.2 billion investment in the Midwest.
Investment Postponement: The company postponed its planned investment in cold-rolling and metal-coating due to increased market uncertainty.
Market Influences: The American steel industry is undergoing significant changes due to new tariffs on imported steel and the recent acquisition of U.S. Steel by Nippon Steel.
Leadership Insight: Chief Executive Mark Vassella highlighted these factors as critical in shaping the company's strategic decisions moving forward.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BSL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BSL
Wall Street analysts forecast BSL stock price to rise
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 13.230
Low
Averages
High
Current: 13.230
Low
Averages
High
No data
About BSL
Blackstone Senior Floating Rate 2027 Term Fund (the Fund) is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek high current income, with a secondary objective to seek preservation of capital, consistent with its primary goal of high current income. Under normal market conditions, the Fund invests at least 80% of its Managed Assets in senior, secured floating rate loans (Senior Loans). The Fund may also invest in second-lien loans and high yield bonds and employs financial leverage, which may increase risk to the Fund. It invests in various sectors, including healthcare providers and services, software, capital markets, building products, aerospace and defense, financial services, healthcare equipment and supplies, professional services and information technology (IT) services. Blackstone Liquid Credit Strategies LLC (the Adviser) acts as the investment adviser of the Fund.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BlueScope Steel Announces A$438 Million Special Dividend Return to Shareholders
- Special Dividend Announcement: BlueScope Steel has declared a special dividend of A$1.00 per share, totaling A$438 million, to be paid on February 24, 2026, reflecting the company's commitment to shareholder returns.
- Diverse Cash Sources: The funds for this dividend come from the A$167 million sale of a 50% stake in the Tata BlueScope joint venture and the A$76 million sale of 33 hectares of land at West Dapto, highlighting the company's proactive asset disposal strategy.
- Capital Release Expectations: Through these asset transactions, BlueScope anticipates a working capital release of approximately A$200 million across fiscal years 2025 and 2026, enhancing the company's financial flexibility and investment capacity.
- Future Cash Flow Growth: The company expects a significant increase in free cash generation over the next 12 to 18 months, driven by the completion of its major investment program, with capital expenditures projected to decline by at least A$500 million in fiscal year 2027 compared to fiscal year 2026, improving overall financial health.
See More
2026 Set to be a Major Year for IPOs, Featuring Companies like SpaceX and Anthropic
- IPO Activity in 2025: Initial public offerings saw a significant resurgence in 2025, with 202 companies pricing IPOs, marking a 35% increase from the previous year.
- Financial Growth: These IPOs raised approximately $44 billion, which is nearly a 50% increase compared to 2024, despite challenges such as tariff-related volatility and a government shutdown.
See More
SGH and Steel Dynamics Submit A$30 Offer for BlueScope Steel Acquisition
- Acquisition Proposal: SGH and Steel Dynamics have submitted a non-binding indicative offer to acquire BlueScope at A$30 per share, representing a 27% premium over its closing price, valuing BlueScope at A$13.2 billion and providing shareholders with immediate value uplift.
- Business Integration: Under the proposal, SGH will retain BlueScope's Australia and Rest of World operations, while Steel Dynamics will acquire its North American operations, ensuring both companies maintain leadership positions in their respective markets.
- Exclusivity Agreement: SGH and Steel Dynamics have entered into a 12-month exclusivity agreement, committing significant resources to advance the transaction, with no anticipated major regulatory hurdles, thereby accelerating the deal process.
- Management Retention: To ensure continuity, SGH intends to offer one or two board positions to current BSL directors and retain key management for the Australian operations, demonstrating a commitment to business stability.
See More
BlueScope Steel Confirms $30 Takeover Offer, Shares Surge 22%
- Acquisition Offer Confirmation: BlueScope Steel confirmed it received a $30 per share takeover offer from a consortium led by SGH Ltd and US-based Steel Dynamics, resulting in a nearly 22% surge in its stock price, indicating strong market optimism about the potential deal and possibly triggering an industry consolidation wave.
- Market Performance Volatility: Despite the overall decline in the Australian stock market, with the S&P/ASX 200 index falling 0.46% to 8,688.10 points, BlueScope's robust performance highlights the resilience of individual stocks under merger news, which may attract more investor interest.
- Service Sector Expansion Slows: According to the latest survey from S&P Global, Australia's service sector continued to expand in December with a PMI score of 51.1, although down from 52.8 in November, it remains above the critical 50 mark, indicating a stable economic foundation.
- Currency Market Dynamics: The Australian dollar is trading at $0.672 on Tuesday, reflecting a cautious market sentiment regarding Australia's economic outlook, which could impact the profitability of export and import businesses.
See More
SGH Bids A$13.15 Billion for BlueScope, Shares Hit 17-Year High
- Acquisition Proposal: Australian conglomerate SGH has made a A$13.15 billion ($8.83 billion) bid for BlueScope, aiming to broaden its industrial footprint, which has driven BlueScope's shares up 21.5% to A$29.710, marking a 17-year high since October 2008.
- Market Reaction: Following the cash offer of A$30 per share from SGH and U.S.-based Steel Dynamics on December 12, BlueScope's stock experienced its largest intraday percentage gain since February 2016, reflecting strong market optimism regarding the acquisition.
- Business Restructuring Plan: SGH intends to acquire all of BlueScope's shares while divesting its North American operations to Steel Dynamics, indicating a strategic belief that BlueScope's Australian and North American businesses are incompatible and would be more valuable separately.
- Shareholder Background: SGH's major shareholder, Kerry Stokes, owns about 50% of the company and controls Boral and other large firms, highlighting his significant influence and resource integration capabilities within the Australian market.
See More
SGH and Steel Dynamics Submit $30 Cash Offer for BlueScope Steel Acquisition
- Acquisition Proposal: SGH and Steel Dynamics have submitted a non-binding indicative offer to acquire 100% of BlueScope Steel at AUD $30 per share, representing a 27% premium over its closing price, providing shareholders with a compelling opportunity for value uplift.
- Market Response: The total equity value of the proposal is AUD $13.2 billion (USD $8.8 billion), and the expectation of no significant obstacles in obtaining regulatory approvals is likely to enhance market confidence in the transaction.
- Strategic Integration: Post-acquisition, SGH will retain BlueScope's operations in Australia and the Rest of World while selling its North American operations to Steel Dynamics, aiming to optimize resource allocation and enhance competitive positioning in their respective markets.
- Management Commitment: SGH intends to offer board positions to current BlueScope directors to ensure knowledge transfer and plans to retain key management, reflecting a commitment to business continuity that is expected to strengthen team stability and execution capabilities.
See More
BlueScope Steel Announces A$438 Million Special Dividend Return to Shareholders
- Special Dividend Announcement: BlueScope Steel has declared a special dividend of A$1.00 per share, totaling A$438 million, to be paid on February 24, 2026, reflecting the company's commitment to shareholder returns.
- Diverse Cash Sources: The funds for this dividend come from the A$167 million sale of a 50% stake in the Tata BlueScope joint venture and the A$76 million sale of 33 hectares of land at West Dapto, highlighting the company's proactive asset disposal strategy.
- Capital Release Expectations: Through these asset transactions, BlueScope anticipates a working capital release of approximately A$200 million across fiscal years 2025 and 2026, enhancing the company's financial flexibility and investment capacity.
- Future Cash Flow Growth: The company expects a significant increase in free cash generation over the next 12 to 18 months, driven by the completion of its major investment program, with capital expenditures projected to decline by at least A$500 million in fiscal year 2027 compared to fiscal year 2026, improving overall financial health.
See More
2026 Set to be a Major Year for IPOs, Featuring Companies like SpaceX and Anthropic
- IPO Activity in 2025: Initial public offerings saw a significant resurgence in 2025, with 202 companies pricing IPOs, marking a 35% increase from the previous year.
- Financial Growth: These IPOs raised approximately $44 billion, which is nearly a 50% increase compared to 2024, despite challenges such as tariff-related volatility and a government shutdown.
See More
SGH and Steel Dynamics Submit A$30 Offer for BlueScope Steel Acquisition
- Acquisition Proposal: SGH and Steel Dynamics have submitted a non-binding indicative offer to acquire BlueScope at A$30 per share, representing a 27% premium over its closing price, valuing BlueScope at A$13.2 billion and providing shareholders with immediate value uplift.
- Business Integration: Under the proposal, SGH will retain BlueScope's Australia and Rest of World operations, while Steel Dynamics will acquire its North American operations, ensuring both companies maintain leadership positions in their respective markets.
- Exclusivity Agreement: SGH and Steel Dynamics have entered into a 12-month exclusivity agreement, committing significant resources to advance the transaction, with no anticipated major regulatory hurdles, thereby accelerating the deal process.
- Management Retention: To ensure continuity, SGH intends to offer one or two board positions to current BSL directors and retain key management for the Australian operations, demonstrating a commitment to business stability.
See More
BlueScope Steel Confirms $30 Takeover Offer, Shares Surge 22%
- Acquisition Offer Confirmation: BlueScope Steel confirmed it received a $30 per share takeover offer from a consortium led by SGH Ltd and US-based Steel Dynamics, resulting in a nearly 22% surge in its stock price, indicating strong market optimism about the potential deal and possibly triggering an industry consolidation wave.
- Market Performance Volatility: Despite the overall decline in the Australian stock market, with the S&P/ASX 200 index falling 0.46% to 8,688.10 points, BlueScope's robust performance highlights the resilience of individual stocks under merger news, which may attract more investor interest.
- Service Sector Expansion Slows: According to the latest survey from S&P Global, Australia's service sector continued to expand in December with a PMI score of 51.1, although down from 52.8 in November, it remains above the critical 50 mark, indicating a stable economic foundation.
- Currency Market Dynamics: The Australian dollar is trading at $0.672 on Tuesday, reflecting a cautious market sentiment regarding Australia's economic outlook, which could impact the profitability of export and import businesses.
See More
SGH Bids A$13.15 Billion for BlueScope, Shares Hit 17-Year High
- Acquisition Proposal: Australian conglomerate SGH has made a A$13.15 billion ($8.83 billion) bid for BlueScope, aiming to broaden its industrial footprint, which has driven BlueScope's shares up 21.5% to A$29.710, marking a 17-year high since October 2008.
- Market Reaction: Following the cash offer of A$30 per share from SGH and U.S.-based Steel Dynamics on December 12, BlueScope's stock experienced its largest intraday percentage gain since February 2016, reflecting strong market optimism regarding the acquisition.
- Business Restructuring Plan: SGH intends to acquire all of BlueScope's shares while divesting its North American operations to Steel Dynamics, indicating a strategic belief that BlueScope's Australian and North American businesses are incompatible and would be more valuable separately.
- Shareholder Background: SGH's major shareholder, Kerry Stokes, owns about 50% of the company and controls Boral and other large firms, highlighting his significant influence and resource integration capabilities within the Australian market.
See More
SGH and Steel Dynamics Submit $30 Cash Offer for BlueScope Steel Acquisition
- Acquisition Proposal: SGH and Steel Dynamics have submitted a non-binding indicative offer to acquire 100% of BlueScope Steel at AUD $30 per share, representing a 27% premium over its closing price, providing shareholders with a compelling opportunity for value uplift.
- Market Response: The total equity value of the proposal is AUD $13.2 billion (USD $8.8 billion), and the expectation of no significant obstacles in obtaining regulatory approvals is likely to enhance market confidence in the transaction.
- Strategic Integration: Post-acquisition, SGH will retain BlueScope's operations in Australia and the Rest of World while selling its North American operations to Steel Dynamics, aiming to optimize resource allocation and enhance competitive positioning in their respective markets.
- Management Commitment: SGH intends to offer board positions to current BlueScope directors to ensure knowledge transfer and plans to retain key management, reflecting a commitment to business continuity that is expected to strengthen team stability and execution capabilities.
See More
