What does the $13bn BlueScope takeover mean for the Whyalla Steelworks?
Ryan Stokes – the son of Australian billionaire Kerry Stokes – has lobbed an offer to buy Australian steel giant BlueScope, casting doubt on the company’s plans to purchase the ailing Whyalla Steelworks. InDaily explains what might happen next.
Australia’s largest steelmaker is the target of a takeover bid by a consortium that includes a Kerry Stokes-controlled entity– but the Premier claims there’s nothing to worry about with the impending Whyalla Steelworks deal.
SGH, formerly known as Seven Group Holdings, has teamed up with the US-based industrial metals group Steel Dynamics to make an all-cash offer for BlueScope Steel.
The offer of $30 per share values BlueScope at $13 billion, and is a premium to its share price close of $24.45 on Monday. Shares in BlueScope were up more than 20 per cent in morning trade today.
BlueScope – as part of a consortium with Japanese, Indian and Korean steelmakers – is the presumptive lead bidder for the embattled Whyalla Steelworks, which is currently being operated by KordaMentha administrators with the assistance of BlueScope expertise.
BlueScope also has a right of first refusal for the Whyalla facility, meaning it can match any other bids that are put forward.
Administrators took control of the steelmaking factory in 2024 after the state government passed special-purpose legislation because of the mounting debts of OneSteel’s owners GFG Alliance.
BlueScope – which has a global presence in steelmaking – is working with Nippon Steel Corporation, JSW Steel Limited and POSCO on its bid.
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While InDaily understands any takeover would likely not impede BlueScope’s bid for Whyalla, it would see the son of billionaire Kerry Stokes take control of South Australia’s strategically important steelmaking facility should he progress with those already laid plans.
Ryan Stokes, via SGH, owns the Boral building business and has an approximately 30 per cent stake in South Australian oil and gas company Beach Energy – the state’s fourth-largest company per the 2025 South Australian Business Index.
This interest could mean the Whyalla Steelworks remains reliant on gas, Climate Energy Finance (CEF) director Tim Buckley told InDaily.
A recent report from CEF warned that a gas-led transition for the Whyalla Steelworks could benefit South Australian oil and gas giant Santos with billions of dollars in taxpayer funds; a “grave strategic misstep” for the state and nation, the think tank said.
“Beach is definitely an alternative supplier to Santos for gas,” Buckley said.
“I would say Stokes is not necessarily South Australia’s friend if South Australia wants to be a green renewable energy superpower. Gas is not the path to green steel.
“If this is a play to get BlueScope Australasia and then to grab hold of the multi-billion dollars of subsidies that the Federal and South Australian governments are going to put on the table to turn Whyalla around, it could also be a play for a lock-in of gas in South Australia and to build up Stokes’ other interests, meaning Beach.”
If Stokes’ consortium is successful, BlueScope will be broken up with SGH planning to on-sell its North American operations to Steel Dynamics, while retaining the Australian steel and Asia coated products and the New Zealand and Pacific islands businesses.
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“We believe BlueScope’s Australian business is a strong strategic fit for SGH, and we have a proven track record of driving performance improvement in domestic industrial businesses,” SGH chief executive Ryan Stokes said.
“We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”
The takeover offer is now being considered by BlueScope, which on Monday night told shareholders it had been approached by the suitors on December 12.
Any deal would require the consortium to undertake due diligence, as well as approval from shareholders and regulators.
BlueScope also confirmed it had previously rejected three separate unsolicited approaches in 2025 and 2024, all of which involved Steel Dynamics.
“These approaches were rejected as they significantly undervalued BlueScope and its future prospects,” it said in a statement.
In its statement, SGH said it intended to retain some BlueScope board members and key management if successful in its bid in order to “maintain continuity and ensure effective knowledge transfer”.
Premier Peter Malinauskas today told reporters he was “not concerned” about the Stokes bid for BlueScope.
“What this demonstrates is that there is capital looking for a home to invest in domestic steel capability,” the Premier said.
“The direct implications for BlueScope obviously need to be worked through and they’ll be considered accordingly.
“We have been heartened by the fact that there is so much interest in acquiring the steelworks. It’s not just BlueScope that has an interest in this opportunity.”
The Premier said that the process was on track, with about seven months to go until a resolution is found for the facility.
“But I say this with caution, because there’s a lot of detail here and complexity.”
– with AAP
