U.S. Commerce Secretary Howard Lutnick by Francis Chung/Bloomberg News
U.S. Commerce Secretary Howard Lutnick has emerged as a key player in determining the future of United States Steel Corp., holding back-to-back meetings with rival bidders for the American steelmaker last week.
Nippon Steel Corp., which is fighting to rescue its friendly deal for U.S. Steel, has offered to invest an additional $7 billion if the Japanese company completes its $14.1 billion takeover, according to people familiar with the proceedings, who asked not to be identified because discussions are private.
Lutnick has also met with Ancora Holdings Group, an activist shareholder with a 1% stake in U.S. Steel that aims to oust the company’s board and install a new CEO. Ancora has said it will invest $6 billion to $7 billion in the Pittsburgh-based company if the Nippon Steel deal fails, according to people familiar with the proceedings.
The White House meetings mark the latest twist in the battle to determine the fate of an iconic U.S. steelmaker that was formed in 1901 when J. Pierpont Morgan merged a collection of assets with Andrew Carnegie’s Carnegie Steel Co. President Donald Trump has repeatedly said he wants U.S. Steel to stay in American hands. Trump’s move to make Lutnick the point person in his administration to find a solution for U.S. Steel underscores his desire to be a dealmaker.
The White House and Commerce Department didn’t respond to requests for comment. U.S. Steel didn’t respond to a request for comment. Nippon Steel and Ancora declined to comment.
The U.S. Steel Corp. Clairton Coke Works facility in Clairton, Pa. (Justin Merriman/Bloomberg News)
Lutnick has taken meetings with Nippon Steel Vice President Takahiro Mori and U.S. Steel CEO David Burritt since Trump made him the main White House person handling the U.S. Steel file, according to people familiar with the decision. Mori was expected to meet Lutnick again April 1.
News website Semafor previously reported on Mori’s plan to meet with Lutnick and that Nippon Steel offered as much as $7 billion to invest in U.S. Steel mills as part of discussions with the administration. Nippon Steel may sweeten its offer made last week, according to a person familiar with the April 1 discussions. The situation remains fluid, the people said, and it’s unclear whether any of this will ultimately change Trump’s mind.
Lutnick has also met top executives from Ancora, whose plans include installing longtime commodities executive Alan Kestenbaum as U.S. Steel’s CEO. The Cleveland-based hedge fund would need to convince existing shareholders of its plan to replace the current CEO and company’s board, and show it can come up with the billions of dollars it’s vowing to commit. Despite that, the plan has gained traction among powerful United Steelworkers union members that run the majority of the American company’s mills.
The union-run mills have been a flash point since Nippon Steel announced its $55-a-share cash deal in December 2023, with union leadership opposing the bid. The takeover offer by a foreign company became a political lightning rod during an election year, with Biden and Trump fighting to gain support in Pennsylvania, a key battleground state and the heart of the American steel industry.
Ancora is offering to invest in existing U.S. Steel assets, with a specific focus on the union-run mills in Pennsylvania, Illinois and Indiana, according to people familiar. Its plan also includes a promise to build an electric-arc furnace at Gary, Ind. That offer is contingent on Trump leaving alone former President Joe Biden’s executive decision in January to block the takeover and letting the deal expire in June.
