BlueScope Steel is rallying after news that US President Donald Trump plans to double tariffs on foreign steel imports from 25% to 50%. While higher tariffs might seem negative for steel producers, BlueScope is uniquely positioned because it generates about half its earnings from its US-based North Star business.
The tariff hike is likely to reduce steel imports into the US, potentially increasing demand for North Star’s products and boosting BlueScope’s earnings outlook. This has driven BlueScope shares up by around 6% in today’s trade1.
Brickworks and Washington H. Soul Pattinson (Soul Patts) are both experiencing substantial gains following the announcement of a transformative $14 billion merger.
The deal will unwind a decades-long cross-shareholding arrangement, creating a more streamlined and investable entity. Brickworks shareholders will receive 0.82 shares in the new company for each share held, initially valuing their shares at a premium to the last close.
However, as Soul Patts shares have also surged, the implied value for Brickworks shareholders has increased even further. Investors are enthusiastic about the merger’s potential to enhance shareholder value, broaden the investor base, and unlock new growth opportunities through a diversified portfolio spanning building materials, property, and investments. Both boards have unanimously backed the merger, which is expected to deliver scale, liquidity, and long-term value creation.
Resimac shares are climbing sharply after the non-bank lender announced a fully franked special dividend of 12 cents per share, rewarding shareholders after a strategic review determined that surplus capital was not required for its current objectives. The special dividend, set to be paid on June 23, has attracted investor interest and pushed Resimac’s share price up by more than 13% today.
In summary, BlueScope is benefiting from favorable US trade policy changes, Brickworks and Soul Patts are surging on the back of a landmark merger that promises to simplify their structure and unlock value, and Resimac is rewarding investors with a special dividend after a strategic review. These catalysts have combined to make these stocks some of the top performers on the ASX today.
