BlueScope Steel

(AI video summary)

This video was created on 8 January 2026 for IG audiences by ausbiz.

ASX code: BSL

BlueScope rejects $13 billion bid

BlueScope Steel has rejected a $13 billion takeover proposal from Kerry Stokes’ private company and United States (US) steelmaker Steel Dynamics, arguing the offer materially undervalues the business. In a statement to the Australian Securities Exchange (ASX), chair Jane McAloon said the bid attempted to acquire the company 'on the cheap'. It marks the fourth takeover approach BlueScope has rejected.

BlueScope shares have been trading just under $30, near record highs. Independent equity research has suggested fair value closer to $19.80 per share should the takeover not proceed, implying meaningful downside risk from current levels.

Analysts highlight weakening fundamentals

Analysts cite declining returns on capital since financial year (FY) 2021 and a 45% fall in earnings per share (EPS) in the most recent FY. Despite this, the stock trades on a price-to-earnings (P/E) ratio of about 31 times, a level considered stretched for a cyclical, capital-intensive steelmaker.

Investment outlook

While the board has highlighted cost reductions and a recovery in earnings before interest, tax, depreciation and amortisation (EBITDA), analysts believe much of this optimism is already priced in. With multiple takeover bids rejected and no certainty of a higher offer emerging, analysts suggest limited upside from current levels.