French tyre maker Michelin said late on Monday it agreed to buy Hull-based engineering company Fenner for £1.2 billion.

The deal for 610p in cash for each Fenner share, represents a more than 30% premium to Fenner’s closing price of 466.6p on Friday.

Michelin CEO Jean-Dominique Senard said: “Michelin values the skills, experience and industry knowledge of Fenner’s management and employees.

“Mastering high-technology materials is key to creating value in the coming years.

“The acquisition will enable Michelin to accelerate its growth in this area, and to strengthen its position as a key player in the recovering mining markets with a comprehensive offering.”

Fenner chair Vanda Murray said: “Fenner has successfully established itself as a world leader in reinforced polymer technology and the board remains confident that Fenner’s existing strategy would deliver significant value for Fenner shareholders as an independent company.

“However, we also believe that the terms of the acquisition acknowledge the quality of Fenner’s businesses and the strength of its future prospects, and as such the board intends to recommend unanimously the acquisition to Fenner shareholders.”

Fenner CEO Mark Abrahams said: “We find the cultural fit and business opportunities excellent with Michelin.

“Both companies have innovation in their DNA and are customer solution oriented.”