Bluescope shares soar on merger
Bluescope shares soar on merger

BlueScope Steel's shares have soared, increasing by more than 50 per cent in early trade after striking a deal with Japan's bigest steelmaker.

BlueScope has sold half of its coated products business to Nippon Steel Corporation.

The new, merged NS BlueScope Coated Products business will be aimed at capturing more of the South-East Asian and North American construction markets.

The entity will be valued at nearly $US1.4 billion ($A1.33 billion), BlueScope said on Monday.

BlueScope said it would pocket $US540 million ($A513.82 million) out of the deal.

The news comes as the beleaguered steelmaker forecast a net loss of about $US1 billion ($A951.52 million) ahead of reporting its annual financial result next week.

The loss relates to impairment charges and the company's restructure, with Australia's steel industry struggling in the face of cheaper international competition and high costs at home.

BlueScope shares were 13.25 cents, or 50.96 per cent, higher at 39.25 cents at 8.25am, but are still about half of where they were a year ago.

The West Australian

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