BlueScope’s new CEO affirms bid rejection

The new managing director and CEO of Australia-based BlueScope Steel Ltd. has released a statement saying she stands by the board of directors’ decision to reject an acquisition bid it acknowledged last month.

BlueScope says Tania Archibald has started serving in the positions of managing director and CEO of the recycled-content steel producer, following the announcement of her appointment to that role last November.

This Week, BlueScope has posted a seven-minute video statement from Archibald designed to outline her agenda as CEO and updating investors on the company’s stance toward the acquisition proposal.

Last month while still under the leadership of retiring CEO Mark Vassella, BlueScope acknowledged it had received an offer from United States-based recycled-content metals producer Steel Dynamics Inc. (SDI) in partnership with Australia-based SG Holdings to buy BlueScope.

A few days later, BlueScope also announced its rejection of that bid. ““Let me be clear—this proposal was an attempt to take BlueScope from its shareholders on the cheap,” said the company’s board chair Jane McAloon at that time. “It drastically undervalued our world-class assets, our growth momentum and our future, and the board will not let that happen,” she added.

Says Archibald in her new statement, “The board rejected the proposal, and I supported that rejection. It very significantly undervalued this company. It sought to transfer value away from our shareholders by buying BlueScope on the cheap.”

She adds, “The board remains open to any proposal that genuinely reflects BlueScope’s fundamental value, but we are not sitting here waiting. We are getting on the front foot to accelerate the delivery of BlueScope’s value.”

Regarding the company’s broader strategy, Archibald says, “The BlueScope portfolio is well positioned; in the U.S., steel demand remains robust and there is no better place in the world to make and sell steel.”

In the U.S., BlueScope operates a sizable recycled-content electric arc furnace (EAF) mill in Delta, Ohio, along with several scrap yards in Ohio and Indiana that help provide it with feedstock.

Continues Archibald, “In Asia, BlueScope maintains a unique footprint across major growth economies, while in New Zealand the EAF has reset the operating model and cost base. In Australia, ongoing population growth is driving steel demand across all sectors including housing and infrastructure.”

Archibald credited her predecessor Vassella for having led business that had been “substantially reshaped and strengthened,” including by championing substantial mill investments.

“BlueScope is uniquely well positioned for success in this new era,” says Archibald. “We have world‑class assets, exceptional people and real upside.”