BlueScope Rejects A$13.2B “Cheap” Takeover Bid

Hey Superheroes,

Markets returned from the holiday break with mixed signals as investors kicked off the first full trading week of 2026. 

The S&P 500 hit fresh record highs early in the week before pulling back, while tech stocks showed signs of rotation as investors continue to question lofty AI valuations. All eyes remain on the Fed’s next move, with traders widely expecting U.S. rates to remain on hold at the January meeting.

Either way, here are this week’s biggest stories.

BlueScope Rejects A$13.2B “Cheap” Takeover Bid

BlueScope Steel’s (ASX:BSL) board has firmly rejected a A$13.2 billion takeover approach from billionaire Kerry Stokes’ SGH Limited (ASX:SGH) and American steel producer Steel Dynamics (NASDAQ:STLD), declaring the A$30 per share proposal dramatically undervalues the company.

Chairwoman Jane McAloon delivered a blunt assessment Wednesday night: the consortium’s offer represented an opportunistic attempt to acquire BlueScope at an unreasonably low price, failing to properly recognise the value of its global assets, earnings trajectory and future prospects.

This marks the fourth time BlueScope has turned down advances from the Stokes family’s industrial empire. The board’s position remains unchanged – the company commands significantly more value than what’s currently being offered.

🔨 The deal structure 

SGH would assume control of BlueScope’s Australian manufacturing footprint under the proposed arrangement, including Port Kembla in Wollongong – the country’s largest steel production facility. Steel Dynamics would acquire BlueScope’s substantial North American operations, encompassing assets like the North Star mill in Ohio.

Market observers and institutional investors have indicated that an offer approaching A$35 per share would more accurately reflect BlueScope’s worth, particularly given its land holdings and improving earnings outlook.

💰 The case for higher value

BlueScope outlined specific value drivers that justify a premium to the current offer. The company pointed to a A$2.3 billion infrastructure investment programme expected to boost cash generation once complete. Management targets an additional A$500 million in annual profits from expansion projects, alongside A$200 million in efficiency gains during the current financial year.

The steel maker also emphasised its 1200-hectare property portfolio as a significant but underappreciated asset.

BlueScope’s defence noted that normalised market conditions for Asian steel pricing and currency rates could deliver A$400 million to A$900 million in additional annual operating profit compared to current depressed levels.

The board also pushed back on the funding plan, saying the bidders wanted to take on debt using BlueScope’s strong, near debt-free balance sheet – putting the company’s own financial strength to work for the takeover, not its shareholders.

Rio and Glencore Confirm Mega-Merger Talks

Rio Tinto (ASX:RIO) and Glencore have confirmed they’re in discussions about a potential merger that would create one of the world’s largest mining companies and a copper production powerhouse.

London-listed Glencore announced Thursday it was in preliminary talks with Rio about combining some or all of their operations, potentially through an all-share merger where Rio would acquire Glencore.

The combination would reshape the global resources sector, though both companies stressed there’s no certainty a deal will materialise.

🔶 A copper giant emerges

The merger would forge one of the world’s biggest copper producers at a moment when demand for the metal is soaring. Glencore’s annual production sits near 1 million tonnes, with Rio contributing another 800,000 tonnes. That combined volume represents approximately 7% of worldwide supply.

The timing reflects copper’s strategic importance in electrification and the renewable energy transition. Copper demand continues climbing as the world shifts toward electric vehicles, renewable power infrastructure and AI data centres – all copper-intensive applications.

🔦 Some other things we’re shining the Spotlight on: 

NICKEL HITS 15-MONTH HIGH: Nickel jumped more than 10% to US$18,785 per tonne after Vale suspended production at its Indonesian facilities while awaiting regulatory approval. The rally provides breathing room for Australia’s battered nickel sector, though prices remain roughly two-thirds below 2022’s peak near US$55,000. Glencore’s Murrin Murrin will become Australia’s only major operating nickel mine once IGO’s Nova-Bollinger closes later this year.

JPMORGAN TAKES APPLE CARD FROM GOLDMAN: JPMorgan Chase agreed to assume the Apple Card programme from Goldman Sachs, ending Goldman’s troubled consumer banking experiment. The handover will span roughly 24 months, with JPMorgan absorbing over US$20 billion in card balances and recording a US$2.2 billion credit loss provision. Goldman negotiated the transfer at a discount exceeding $1 billion.

BUFFETT’S SUCCESSOR LANDS US$25M PAYDAY: Greg Abel assumed the Berkshire Hathaway CEO role on January 1 and will collect a US$25 million salary for 2026 – among the highest across the S&P 500. The figure contrasts sharply with Warren Buffett’s $100,000 annual pay. Wall Street Journal analysis indicates this would be the largest straight salary paid to any S&P 500 CEO in a single year from 2010 through 2024.

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