SYDNEY / MELBOURNE, 9 January 2026 — Australia’s biggest steelmaker BlueScope Steel has won the backing of its largest shareholder after **rejecting a roughly A$13.2 billion (US$9 billion) takeover proposal from a group led by SGH Limited and Steel Dynamics. AustralianSuper, which holds a 13.52 % stake in the company, publicly supported the board’s decision that the offer “very significantly undervalued” BlueScope, reinforcing shareholder resistance to the bid.
The consortium’s bid, worth A$30 per share, was dismissed by BlueScope’s board earlier this week, with directors saying the price failed to adequately reflect the company’s intrinsic value and future earnings potential. AustralianSuper echoed those concerns, saying it would support only a bid “materially higher” than the current proposal.
Strategic Opposition From Key Shareholder
AustralianSuper’s endorsement of the rejection adds weight to BlueScope’s stance, as the pension fund has significant influence in merger and acquisition outcomes given its large shareholding. An AustralianSuper spokesperson said the board’s decision enables BlueScope to remain focused on executing its own long-term strategy without undue distraction.
The largest investor’s backing is notable in the context of recent activist shareholder activity in Australia, AustralianSuper was also instrumental in opposing Brookfield’s A$10.6 billion takeover attempt of Origin Energy in 2023 on similar grounds that the bid undervalued the company.
Bid Rebuffed Over Valuation And Timing
BlueScope’s board and Chair Jane McAloon had earlier characterised the bid as opportunistic, saying it failed to recognise the steelmaker’s asset quality and earnings prospects, especially given expected gains if steel price spreads and foreign exchange rates revert to historical averages. McAloon and directors also noted the offer’s conditional nature, including extensive due diligence and debt financing requirements, as detracting from the proposal’s value.
Relations with bidders remain cautious: SGH and Steel Dynamics did not immediately comment on AustralianSuper’s statement. The board’s rejection marks the fourth refusal of similar approaches by Steel Dynamics and allied groups over recent years.
Market Reactions And Deal Outlook
BlueScope’s stock has traded near the offer price in recent sessions, signalling that some investors still see potential for a deal if terms improve, but it has also illustrated the tension between market pricing and board/shareholder expectations. Analysts say bidders may revisit or revise their offer upward if they hope to gain broader shareholder support.
The heightened scrutiny from major institutional holders like AustralianSuper increases pressure on suitors to present a more compelling valuation or strategic rationale. It also underscores the evolving role of large pension funds in shaping corporate control battles, especially in key Australian industries such as steel and energy.
