LONDON (Dow Jones) - Britain's Pilkington PLC reached a deal to be acquired by Nippon Sheet Glass of Japan at a value of $3.8 billion (2.2 billion pounds).

Nippon Sheet Glass, which already owns 20% of Pilkington, agreed to pay 165 pence a share, a 4.1% premium to Friday's close, for the company.

The Japanese company had been pursuing Pilkington for several months before the companies could finally strike a deal over price.

Pilkington shares on Monday rose 1.9% to 161.5p.

The acquisition will give Nippon Sheet Glass manufacturing operations in 24 countries and sales in more than 130 countries. Nippon Sheet Glass will use bank loans and issue some stock to finance the purchase of Pilkington.

Pilkington, founded in 1826, manufactures flat and safety glass used in construction.

Lazard and UBS advised Nippon Sheet Glass. Citigroup and J.P. Morgan Cazenove advised Pilkington. (END) Dow Jones Newswires 02-27-06 0459ET Copyright (c) 2006 Dow Jones & Company, Inc.