Activist investor Ancora Holdings has built a stake in U.S. Steel and wants the steelmaker to drop its merger agreement with Japan's Nippon Steel, the Wall Street Journal reported on Sunday, citing sources.

The move by Cleveland-Cliffs comes after the Biden administration blocked the U.S. Steel-Nippon tie-up on national security grounds.

U.S. Steel shares jumped Monday on a report that Cleveland-Cliffs is teaming up with rival Nucor for a potential bid for the company, whose $14.1 billion buyout by Nippon Steel was recently blocked by President Joe Biden.

This is a developing story. Check back for updates. Cleveland Cliffs is partnering with rival Nucor in a potential bid for U.S. Steel, whose takeover by Japan’s Nippon Steel was just blocked by the White House earlier this month,

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,

The company’s renewed interest comes after the Biden administration blocked Nippon Steel from acquiring the onetime American powerhouse.

Earnings ESP for NUE is +2.40%, with a consensus estimate for Q4 currently pegged at 64 cents. Nucor Corporation NUE is set to release fourth-quarter 2024 results after the closing bell on Jan. 27. See the Zacks Earnings Calendar to stay ahead of market-making news.

U.S. Steel ( X 0.41%) has been in the news for months since Japan's Nippon Steel made a generous offer for the iconic American steelmaker. Nippon's $14.9 billion bid in late 2023 represented a nearly 40% premium to U.S. Steel's share price at the time.

An activist shareholder is planning a proxy battle at United States Steel Corp. to force the end of the controversial $14.9 billion acquisition by Nippon Steel, The Wall Street Journal reported late Sunday.

Nippon's offer to buy USS was $14 billion while, according to Cliff CEO Lourenco Goncalves, Cliffs' final bid was $13.8 billion. Before Biden killed the Nippon deal, a bipartisan group, including incoming President Donald Trump, also opposed the deal.

Lourenco Goncalves, the CEO of Ohio-based steelmaker Cleveland Cliffs, said in a news conference Monday, Jan. 13, 2025, that he wanted to make a new bid for U.S. Steel, which accepted the buyout offer from Nippon in 2023 after it rejected an offer by Cleveland-Cliffs.

Activist investor Ancora Holdings is preparing to wage a proxy battle at U.S. Steel and wants the company to turn the page from its failed marriage with Nippon Steel, according to people familiar with the matter.