BlueScope Appoints New CEO Amid Merger Bid Rejection

Australia-based BlueScope Steel Ltd. has officially welcomed Tania Archibald as its new Managing Director and CEO. Archibald, who began her tenure following the announcement of her appointment last November, has firmly backed the board of directors’ decision to reject a recent acquisition bid for the company.

In a seven-minute video statement released this week, Archibald outlined her vision for the company’s future while addressing the rejected proposal from United States-based Steel Dynamics Inc. (SDI) and Australia-based SG Holdings. The offer, acknowledged last month during former CEO Mark Vassella’s leadership, was swiftly turned down by BlueScope’s board.

A Firm Stand Against the Bid

The board’s rejection of the proposal was unequivocal. Chair Jane McAloon previously described the offer as undervaluing the company, stating, “Let me be clear - this proposal was an attempt to take BlueScope from its shareholders on the cheap. It drastically undervalued our world-class assets, our growth momentum and our future, and the board will not let that happen.”

Archibald echoed this sentiment in her latest statement, adding, “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. 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.”

A Strategic Global Footprint

Detailing the company’s current position, Archibald expressed her confidence in BlueScope’s operations, highlighting its resilience and opportunities for growth. “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”, she said.

BlueScope operates a significant recycled-content electric arc furnace (EAF) mill in Delta, Ohio, along with several scrap yards in Ohio and Indiana that provide feedstock for its operations. Outside of the U.S., the company’s presence across Asia and New Zealand is a key part of its strategy. “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”, Archibald explained. She also pointed to Australia’s increasing steel demand driven by population growth across housing and infrastructure sectors.

A New Chapter Under Archibald’s Leadership

Archibald praised her predecessor, Mark Vassella, for his contributions in reshaping and strengthening the business. She noted the substantial investments made under his leadership, which have bolstered BlueScope’s position in the market. Looking forward, Archibald remains optimistic about the company’s future. “BlueScope is uniquely well positioned for success in this new era”, she said. “We have world-class assets, exceptional people and real upside.”

As she takes the helm, Archibald’s agenda reflects a commitment to building on BlueScope’s strengths and delivering value to shareholders while maintaining a firm stance against undervalued acquisition attempts.

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