UK plasterboard firm BPB has agreed to be bought by France's Saint-Gobain, marking the end of a long-running takeover battle for the company.
BPB products have been used at a range of sites across the globe
Saint-Gobain has agreed to pay 775 pence per share for BPB, which values the UK firm at £3.9bn ($6.7bn).
In August, Saint-Gobain had launched a hostile takeover bid of 720p a share, a price which BPB argued "fundamentally undervalued" the business.
BPB runs 90 factories worldwide, employing more than 12,500 staff.
Saint-Gobain makes ceramics, plastics and cast iron as well as glass, operating in more than 49 countries.
"Combining our insulation business with BPB creates a global leader in building interior solutions," said Jean-Louis Biffa, chairman and chief executive of Saint-Gobain.
The price is right
The French company said in July that it was considering a bid for BPB, and its first approach was reported to be an offer of 675p per share.
But BPB rejected all bids and put up a robust defence by saying it would raise dividends and return £600m to investors.
However, BPB said it would now be recommending Saint-Gobain's latest price.
"BPB's strategy has been to provide superior growth as a focused independent company," said Sir Ian Gibson, BPB chairman.
"However, Saint-Gobain have today made a compelling offer which delivers full value for BPB's world leading position and its future prospects."