NAARDEN, The Netherlands, Nov 23, 2007 (AFP) - Dutch electrical supplies distributor Hagemeyer announced Friday it had agreed a 3.1-billion-euro (4.6-billion-dollar) takeover bid from with France's Rexel.

Both companies announced they had agreed a 4.85 euro per share cash offer for all Hagermayer shares and a cash offer for its outstanding convertible bonds, which valued the company's equity at about 3.1 billion euros.

Rexel originally announced its all-cash bid late October but the 4.60 euro offer per share was rejected by Hagemeyer. The current deal will enable the French company to retain its market leadership.

Sonepar of France, the number two company in the sector, had made its own bid for Hagemeyer. Under Friday's deal, it agreed to withdraw its earlier bid and instead buy selected Hagemeyer assets from Rexel.

Sonepar will buy the American, Asian-Pacific and the Austrian, Swiss and Swedish units of Hagemeyer.

Rudi De Becker, Chairman of Hagemeyer's Management Board, said: 'We have reached an agreement with Rexel that is very advantageous for our shareholders.'

Jean-Charles Pauze, Chairman of Rexel's Management Board, said: 'The combination with Rexel will provide Hagemeyer's businesses with excellent development opportunities.'

The offer is expected to open officially in December and the companies hope to close the transaction in the first quarter of 2008 if they meet all the anti-trust requirements.