Nippon Sheet Glass Co. announced Monday it has sealed a deal to acquire British glassmaker Pilkington PLC in a friendly takeover bid worth some 359 billion yen that at one point was rejected by the Pilkington side.
The takeover, which has been approved by Pilkington's board of directors, will make the British firm a fully owned subsidiary and push up Nippon Sheet Glass' sales to about 760 billion yen, making it one of the largest makers of flat glass in the world.
Nippon Sheet Glass said its acquisition price is £1.65, or roughly 340 yen, per share. The figure is higher than both the £1.58 offer it made in December and an offer of £1.50 it made when it first approached the other firm in the fall. Pilkington rejected both overtures.
The two sides have agreed that Pilkington's current board of directors will stay on after the takeover and take part in the firm's operations.
Nippon Sheet Glass said in a statement the takeover bid will increase its production bases around the world amid a potential increase in demand for high-quality sheet glass in the construction field and the automobile sector in both developing and industrialized nations.
Pilkington shareholders' will be informed of the deal by the end of next month and the transaction is expected to take effect by the end of June after arrangements are approved in court in Britain, according to Nippon Sheet Glass officials.