Japanese chemicals supplier Showa Denko K.K.has agreed to pay more than double its own market value to buy its bigger rival Hitachi Chemical Co.

Showa Denko will pay as much as 964 billion yen ($8.8 billion) for all shares of the chemicals unit of Hitachi Ltd., one of Japan’s largest industrial conglomerates, it said in a statement Wednesday. The tender offer will start by around February at 4,630 yen a share, the company said, 34% higher than the Nov. 25 closing price, the day before talks between the two companies were reported.

The purchase would be Showa Denko’s largest on record and would boost the company’s revenue from advanced automotive batteries and related materials — segments that are growing fast as carmakers race to make more electric-powered vehicles. Hitachi has been shedding non-core businesses to re-focus on manufacturing equipment and data services that benefit from internet-of-things technologies.

Showa Denko is seeking a 295 billion yen loan from Mizuho Financial Group Inc. and will sell preference shares to the bank and to the Development Bank of Japan, it said in the announcement. The company doesn’t plan to sell common shares, it said.

On Wednesday, Isuzu Motors Ltd. agreed to buy Japanese manufacturer UD Trucks from Volvo Group in a 250 billion yen deal and forge a strategic alliance.