(Bloomberg) -- Swedish engineering giant Alfa Laval AB agreed to buy Neles Oyj in a deal that values the Finnish valve maker at roughly $2 billion.

After striking a so-called combination agreement with Neles, Alfa will make a voluntary recommended public cash tender offer for all issued and outstanding shares, excluding those held by Neles or any of its subsidiaries, according to a statement on Monday.

Neles’ shareholders will be offered 11.50 euros in cash per share, valuing its total equity at about 1.73 billion euros ($2 billion). Neles shares closed at 8.658 euros on Friday.

Neles board members who participated in the decision-making process agreed to unanimously recommend the offer.

“The transaction is expected to result in significant benefits for stakeholders, including creation of shareholder value for both Neles and Alfa Laval shareholders,” according to the statement. “Alfa Laval believes that there is a strong strategic and cultural fit in the transaction.”

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