Activist investor Ancora Holdings has acquired a stake in U.S. Steel (X.N) and is urging the company to abandon its proposed merger with Japan’s Nippon Steel (5401.T). According to The Wall Street Journal, Ancora also seeks to replace U.S. Steel CEO David Burritt, nominating nine candidates to the company’s 12-person board. Among them is Alan Kestenbaum, the former CEO of Stelco, who Ancora hopes will take over as chief executive.
Although the exact size of Ancora’s stake is unclear, the investor has ruled out a sale of U.S. Steel to another party, focusing instead on reshaping the company’s leadership and strategy. Ancora’s actions add tension to an already complex situation, as rival steelmakers Cleveland-Cliffs (CLF.N) and Nucor (NUE.N) reportedly explore a joint bid for U.S. Steel. Cliffs had previously proposed an acquisition, but the offer was rejected due to antitrust concerns and fears of excessive consolidation, which could result in a single company controlling up to 95% of U.S. iron ore production.
The Nippon Steel merger has faced strong political opposition. Earlier this month, President Joe Biden blocked the proposed $14.9 billion deal on national security grounds and ordered Nippon to abandon its bid by June. Both companies have filed lawsuits challenging the decision. Former President Donald Trump also voiced his opposition in December, stating on Truth Social: “I will block this deal from happening.”
As the situation unfolds, U.S. Steel faces mounting pressure from Ancora, political leaders, and potential competitors. The outcome will determine not only the company’s leadership but also its role in a rapidly evolving global steel industry. Both U.S. Steel and Nippon Steel declined to comment on Ancora’s demands, leaving the future of the merger and the company’s leadership uncertain.
