Steel Dynamics and SGH offer $8.8 billion for Australian BlueScope Steel

American Steel Dynamics and the Australian conglomerate SGH have submitted a joint offer to purchase BlueScope Steel Ltd., one of Australia's largest steel companies, valuing it at 13.2 billion Australian dollars ($8.8 billion).

Steel Dynamics has repeatedly tried to buy an Australian competitor with significant assets in the United States. The offer, which became known on Monday, was sent in mid-December, but the partners have not yet received a response.

As noted in the Steel Dynamics press release, BlueScope shareholders will receive AUD$30 per share, which is 27% higher than the closing price on December 12.

The deal structure assumes that SGH buys all BlueScope assets and then sells the North American business to Steel Dynamics. In the United States, BlueScope owns, among other things, a large