U.S. Steel Dynamics and Australian conglomerate SGH have submitted a joint offer to buy BlueScope Steel Ltd, one of Australia’s largest steelmakers, valuing it at A$13.2 billion ($8.8 billion).
Steel Dynamics has previously repeatedly tried to buy the Australian rival, which has significant assets in the United States. The offer, which became known on Monday, was sent in mid-December, the partners have not yet received a response.
According to a Steel Dynamics press release, BlueScope shareholders will receive A$30 per share in the company, up 27% from the closing price on 12 December.
The deal is structured so that SGH buys all of BlueScope’s assets and then sells Steel Dynamics’ North American business. In the United States, BlueScope owns, among other things, the large North Star steel business, which accounts for 4 per cent of US hot-rolled coil production.
BlueScope share prices jumped by 21% at the end of trading on Tuesday.