Merger creates huge temp agency

Randstad has said there will be no enforced job lay-offs

Dutch recruitment firm Randstad has agreed to buy local rival Vedior in a cash-and-share deal worth 3.51bn euros ($5.14bn; £2.49bn).

The offer values Vedior at 20.19 euros per share - a 64.1% premium to its closing share price on 29 November.

The deal is expected to be completed early next year, subject to approval by shareholders and regulatory bodies.

It would create the second biggest global human resources firm with 30,000 staff and a presence in 51 countries.

In a joint statement, the firms said they would have the largest market share of staffing in Germany, Holland, Belgium, Portugal, Poland, Canada and India if the deal goes through.

'Value creation'

"This deal makes the future prospects for our clients, shareholders and employees even better," said Ben Noteboom, Randstad chief executive.

He added that there would not be "forced lay-offs".

Tex Gunning, chief executive of Vedior, said: "This transaction provides our shareholders with a very attractive offer and at the same time an opportunity to participate in the future value creation of an industry leader."

The deal is expected to go through by March or April 2008.