{"id":489334,"date":"2026-02-19T04:20:17","date_gmt":"2026-02-19T04:20:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/489334\/"},"modified":"2026-02-19T04:20:17","modified_gmt":"2026-02-19T04:20:17","slug":"bluescope-remains-in-race-for-whyalla-steelworks-as-analyst-warns-of-market-concentration","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/489334\/","title":{"rendered":"BlueScope remains in race for Whyalla steelworks as analyst warns of market concentration"},"content":{"rendered":"

For more than 50 years, business owner Malcolm McLeod has watched the fortunes of the Whyalla steelworks rise and fall.<\/p>\n

“When the steelworks gets a cold, we all get pneumonia,” he said of the regional city on South Australia’s western Spencer Gulf.<\/p>\n

Last year, the state government forced the Whyalla steelworks into administration<\/a> after owner GFG Alliance failed to pay more than $300 million in debts, including state royalties, water charges and payments to local creditors.<\/p>\n

\"Steelworks<\/p>\n

Interested buyers of the Whyalla steelworks have rounded down from 70 to a final five. (ABC Illawarra: Tim Fernandez)<\/p>\n

It was the second time the steelworks had closed in less than a decade. Over 100 jobs were lost<\/a> <\/a>following the government takeover.<\/p>\n

“There’s lots of scars out there. A lot of people did it tough,” Mr McLeod said.<\/p>\n

Twelve months on and the sale process of the steelworks, including both its port and mining assets, has now entered its final stages.<\/p>\n

South Australian Premier Peter Malinauskas said the number of interested buyers had narrowed from 70 to five. All of those were foreign companies bar one Australian-based bidder.<\/p>\n

\"A<\/p>\n

Malcolm McLeod says the prospect of Australian ownership of the steelworks signals hope. (ABC News: Jenae Madden)<\/p>\n

That company is BlueScope Steel, which owns and operates Australia’s largest steelworks at Port Kembla in NSW.<\/p>\n

Mr McLeod, president of the Whyalla Business Chamber, said the past year had been filled with uncertainty for locals, but the prospect of Australian ownership signalled hope.<\/p>\n

“Because of what we’ve been through with overseas [owners], we would certainly feel better if there was an Australian company involved,” he said.<\/p>\n

Mr McLeod said because BlueScope was ASX-listed people felt more confident that it would operate transparently. He also said an Australian-owned company was more likely to work in the national interest.<\/p>\n

\"Peter<\/p>\n

Peter Malinauskas in the Spencer Gulf spruiking the region’s capacity to contribute to “important defence and technology sectors”. (ABC News: Jenae Madden)<\/p>\n

“I go back to the issue of sovereignty \u2026 we don’t want to sell it to the wrong people and they drag the iron ore out of the Iron Duke mine and send it overseas.”<\/p>\n

Concerns of concentration<\/p>\n

Australia has just two primary, major integrated steelworks \u2014 Port Kembla and Whyalla. Both are crucial for domestic construction and infrastructure.<\/p>\n

A global markets expert at the University of Adelaide, Daniel Rossetto, said if BlueScope acquired Whyalla it could stifle competition and lead to higher prices.<\/p>\n

“It could also reduce incentive to innovate and that increases the likelihood that consumers will be paying more than necessary,” Dr Rossetto said.<\/p>\n

\"Climate<\/p>\n

BlueScope owns the North Star operation in the US and assets in New Zealand and Asia. (AAP: Dean Lewins)<\/p>\n

He said if BlueScope were to become the successful owner, the Australian Competition and Consumer Commission (ACCC) “would need to be satisfied there were no monopoly or duopoly concerns”.<\/p>\n

The ACCC said it was aware of the shortlist and would review any proposed acquisition once it appeared on its mergers register.<\/p>\n

Sovereign capabilities<\/p>\n

While speaking to press the premier spoke about the Whyalla steelworks as an asset to Australia’s “sovereign capability”.<\/p>\n

Dr Rossetto said he wanted to know what the government meant by that.<\/p>\n

“Are we just talking about domestic structural steel needs or are we talking about a need for steelmaking capability that supplies into the defence and military?” he said.<\/p>\n

“Are we saying that if foreign ownership is allowed that those foreign companies will not be allowed to take direction from people offshore to do things against the national interest?<\/p>\n

\"Historic<\/p>\n

HMS Whyalla was used for escort and patrol duties during World War II. (Supplied: Whyalla City Council)<\/p>\n

“Unfortunately, until the government tell us more about what they mean, the public are left to guess.”<\/p>\n

Meanwhile, Mr McLeod is also thinking about how Whyalla fits into a bigger conversation about Australia’s military capabilities.<\/p>\n

“Let’s remember in the Second World War, the ammunition was made in Whyalla. Ships were made in Whyalla,” Mr McLeod said.<\/p>\n

“We’re a steel city. That’s our history.”BlueScope making significant profits<\/p>\n

BlueScope’s latest half-year results showed underlying net profit after tax more than doubled to $391 million.<\/p>\n

In January it rejected a $13.2 billion bid by Kerry Stokes SGH and US group Steel Dynamics.<\/p>\n

This week, SGH and Steel Dynamics returned with a “final” offer of $15 billion.<\/p>\n

\"Drone<\/p>\n

BlueScope says it is committed to its “non-binding expression of interest” for the Whyalla steelworks. (ABC News: Che Chorley)<\/p>\n

BlueScope said it would consider and evaluate the proposal.<\/p>\n

Dr Rossetto said BlueScope’s improved financial position did not necessarily mean it was closer to securing Whyalla.<\/p>\n

In a statement to the ABC, BlueScope said it remained committed to its non-binding expression of interest for the Whyalla steelworks.<\/p>\n

The finalisation of the sale of Whyalla steelworks is slated for late 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"For more than 50 years, business owner Malcolm McLeod has watched the fortunes of the Whyalla steelworks rise…\n","protected":false},"author":2,"featured_media":489335,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,247331,247330,37172,99,247328,37160,247329,247327,247326],"class_list":{"0":"post-489334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-au","9":"tag-australia","10":"tag-australias-largest-steelworks","11":"tag-australian-steelworks","12":"tag-bluescope-steel","13":"tag-business","14":"tag-finalisation-of-the-sale-of-whyalla-steelworks","15":"tag-gfg-alliance","16":"tag-when-is-the-finalisation-of-the-sale-of-whyalla-steelworks","17":"tag-who-owns-whyalla-steelworks","18":"tag-who-will-buy-whyalla-steelworks"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/489334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=489334"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/489334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/489335"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=489334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=489334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=489334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}