String.replaceAll method takes the first parameter as Regex. So, you need to escape your (, and ) which have special meaning in Regex.
Alternatively, you can use Pattern.quote method to escape your special characters for you. Also, you need to store the return value of replaceAll method in your string s1. Since Strings in Java are immutable, so any method of String class you invoke, returns a modified string. You need to make use of the return value, else you won't see any changes.
So, you need to modify your code as:-
s1 = s1.replaceAll(java.util.regex.Pattern.quote("<(><<)>"),"<");
This will automatically replace your pattern if it is present in the string, else it returns an unmodified string.