January 12, 2019 - 11:10 AM EST
BlueScope Steel: A Cash Machine Benefiting From The Trade War


BlueScope Steel: A Cash Machine Benefiting From The Trade War

Several years ago, I argued BlueScope Steel (BLSFF) (BLSFY) had turned a corner as the outlook for the company improved substantially. A few months later, the company acquired the remaining 50% in a plant it didn't own yet, and I was also very pleasantly surprised by this move. In hindsight, this acquisition was very smart as Bluescope paid US$720M for the 50% stake valuing North Star at US$1.44B. Bluescope paid 7 times the EBITDA of the plant, but the Northstar EBIT (without the DA) has increased fourfold (!) in the past

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Source: SeekingAlpha (January 12, 2019 - 11:10 AM EST)