Polish copper miner KGHM Polska Miedz will acquire Canada’s Quadra FNX Mining for about $2.84bn.

The transaction will be funded using existing cash in hand, and will be the largest overseas transaction completed by a Polish company to date, according to Quadra.

The company will pay C$15 a share, a 41% premium to Quadra’s 20-day volume-weighted average price.

The deal, which is expected to close in the first quarter of 2012, will increase KGHM’s annual production by more than 100,000t.

The acquisition will enable KGHM Polska Miedz to cut production costs and raise output, reports Bloomberg.