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Australian steelmaker BlueScope is weighing a near $9 billion takeover bid from media billionaire Kerry Stokes and US-based steelmaker Steel Dynamics, a move that could reshape the company's future and broaden Stokes' industrial footprint.

The proposed deal would see Stokes' SGH, controlled by his son Ryan Stokes, acquire BlueScope's Australian operations, while Steel Dynamics would take over the company's North American unit.

Steel Dynamics' US assets are located roughly 50 miles from BlueScope's Ohio plant, making the transaction "highly complementary" to its operations, according to CEO and Chair Mark Millett.

Shares of BlueScope surged 21% on Tuesday to A$29.54, just below the A$30 indicative offer, signaling optimism that a deal might go through. SGH shares also rose 5.4% on the news, TheEdge reported.

The all-cash approach offers investors a potential quick exit, particularly as BlueScope has faced declining profits due to postponed orders amid US tariff uncertainty. BlueScope noted that its own exposure to tariffs is limited.

The steelmaker confirmed it is considering the bid, after previously rejecting three approaches from Steel Dynamics or associated groups, including one that was just a dollar per share below the current offer.

"I see the SGH-led proposal as opportunistic but potentially value-unlocking for shareholders, albeit highly conditional and execution-heavy," said Mark Gardner, CEO of investment firm MPC Markets. He added that "for employees and suppliers, there's inevitable uncertainty."

BlueScope Hires UBS to Represent Interests

The bidders have indicated that BlueScope's Australian and North American management teams would remain in place under the new ownership.

According to Reutes, Omkar Joshi, chief investment officer at Opal Capital Management, said the carve-up of the company "looks straightforward" given the geographic separation but suggested that "the bidders will likely need to increase their bid before it can be accepted."

SGH hired Barrenjoey and Goldman Sachs as advisors, while Steel Dynamics enlisted JPMorgan.

BlueScope has appointed UBS to represent its interests. The companies did not disclose whether BlueScope had agreed to exclusive due diligence, which under Australian law lasts four weeks for prospective bidders.

This acquisition would mark Stokes' second major purchase in two years. SGH acquired building materials company Boral in 2024, expanding the Stokes empire beyond its media roots in the Seven Network into sectors ranging from energy exploration to heavy equipment sales.