Activist Investor Battles for Control of U.S. Steel Amid Merger Disputes

Ancora Holdings has acquired a stake in U.S. Steel, urging the company to abandon its merger with Nippon Steel. Ancora also seeks to replace U.S. Steel's CEO with its own board nominees. Former President Biden and Donald Trump oppose the Nippon deal, citing national security concerns.

Activist investor Ancora Holdings has taken a stake in U.S. Steel, advocating for the steelmaker to exit its proposed merger with Japan's Nippon Steel, as reported by the Wall Street Journal. The specifics of Ancora's stake remain undisclosed, but the investor aims to galvanize shareholders in support of replacing U.S. Steel's CEO, David Burritt, according to the report.

Ancora reportedly has no interest in selling U.S. Steel to another entity and has named nine director candidates for the company's 12-member board, including former Stelco chief Alan Kestenbaum. Neither Ancora, U.S. Steel, nor Nippon Steel provided immediate comments to Reuters outside standard business hours. Earlier this month, former U.S. President Joe Biden halted Nippon Steel's acquisition of U.S. Steel on national security grounds, postponing a decision until June.

The involved companies have initiated legal action against the Biden administration for blocking the takeover. Donald Trump, who was inaugurated as U.S. president on January 20, echoed his opposition to Nippon Steel's acquisition attempt on his social media channel, Truth Social. Additionally, Reuters disclosed that competitor Cleveland-Cliffs might collaborate with Nucor for an all-cash bid for U.S. Steel. Despite previous acquisition proposals, U.S. Steel has raised antitrust and steel supply consolidation concerns, potentially leading to a single company controlling as much as 95% of U.S. iron ore output.

(With inputs from agencies.)