UK glass maker Pilkington has agreed to a £2.2bn takeover by Nippon Sheet Glass after rejecting two earlier bids.
The offer of 165p a share, which Pilkington's board recommended to shareholders on Monday, will end its 180 years of independence.
When the deal goes through it will create a global glass company with annual sales of about £3.7bn. Pilkington controls about one-fifth of the global glass market and NSG has about 4%.
The offer values Pilkington at £2.2bn and represented a 30% premium on the price the shares were when news of the bid emerged.
It is the third time that the Japanese firm, which owns 20% of Pilkington, has offered to buy out the company. The first two offers were rejected by Pilkington's board.
David Taylor, an analyst at Teather & Greenwood, said Pilkington's management had played its hand well. He said: "With around 20% of the shares in NSG's hands, there was never likely to be another bidder."
Taylor added that the deal had been driven by the "globalising of Japanese vehicle assemblers".
Half of Pilkington's sales are in the construction industry, with the rest in the automotive sector. About 80% of its market is in Europe and North America, although the firm operates in 130 countries.
After the acquisition, Neil Rudd, Pilkington's chairman, will leave. Chief executive Stuart Chambers and finance director Ian Lough will remain. No plant closures are planned.