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Steel Dynamics Raises BlueScope Offer to $11 Billion
Updated Bid Follows a Rejected Proposal and Details Proposed Split Of US and Australian Assets
Steel Dynamics and SGH raised their all-cash bid for Australia’s BlueScope Steel in an effort to woo shareholders after the target rejected a previous offer.Ìý
The best and final proposal of A$32.35 a share represents a total equity value of A$15 billion ($11 billion), the bidders said in a joint statement. BlueScope last monthÌýÌýan offer at A$30 a share from the U.S. steelmaker and SGH — controlled by billionaire Kerry Stokes.Ìý
Bluescope in January said it received three previous offers from Steel Dynamics, which is eyeing the Australian company’s low-margin steel business in North America — which generates the majority of its earnings.Ìý
Steel Dynamics and SGH plan to split the business, with the U.S. company taking the North Star steelworks in Ohio and the downstream product business in North America, while SGH would own the Australian Port Kembla steelworks.Ìý
