US Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialisation, is being acquired by Nippon Steel in an all-cash deal valued at approximately 14.1 billion dollars (£11.1 billion).

The transaction is worth about 14.9 billion dollars (£11.9 billion) when including the assumption of debt.

The deal’s announcement comes several months after US Steel rejected a 7.3 billion dollar (£5.8 billion) buyout proposal from rival Cleveland Cliffs.

US Steel got the offer in August and said at the time it was reviewing “strategic alternatives” after receiving several unsolicited offers.

The company said it rejected the offer because Cleveland-Cliffs was pushing it to accept the terms without being allowed to conduct proper due diligence.

Soaring prices have helped fuel consolidation in the steel industry this decade.

Steel prices more than quadrupled near the start of the pandemic to near 2,000 dollars (£1,581) per metric tonne by the summer of 2021 as supply chains experienced gridlock, a symptom of surging demand for goods and the lack of anticipation of that demand.

Nippon, which will pay 55 dollars (£43.47) per share for US Steel, said on Monday that the deal will bolster its manufacturing and technology capabilities.

It will also expand Nippon’s production in the US and add to its positions in Japan, India and the Association of Southeast Asian Nations region.

Nippon said the acquisition is anticipated to bring its total annual crude steel capacity to 86 million tons (78 million metric tonnes) and help it capitalise on growing demand for high-grade steel, automotive and electrical steel.

“The transaction builds on our presence in the United States and we are committed to honouring all of US Steel’s existing union contracts,” Nippon president Eiji Hashimoto said in a prepared statement.

US Steel chief executive David Burritt said the deal is beneficial to the United States, “ensuring a competitive, domestic steel industry, while strengthening our presence globally”.

The deal, which was approved by both companies’ boards, is targeted to close in the second or third quarter of 2024.

It still needs approval from US Steel shareholders.

Shares of United States Steel soared more than 27% before the market opened on Monday.