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Accor SA agreed to buy the owner of the luxury Fairmont, Raffles and Swissotel brands for about $2.9 billion in shares and cash.

Europe’s biggest hotel operator will pay 46.7 million new shares and $840 million in cash for FRHI Holdings Ltd., Accor said in a statement on Wednesday. Accor’s buying the company from Qatar Investment Authority, Prince Alwaleed Bin Talal’s Kingdom Holding Co. and Oxford Properties Group Inc.

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Paris-based Accor, which operates the Ibis and Sofitel chains, has 3,800 hotels worldwide. FRHI, based in Toronto, has more than 100 high-end hotels, including Manhattan’s Plaza, London’s Savoy and Raffles in Singapore, and 40 under development.

The deal “offers us robust and global leadership in luxury hotels, a key segment in terms of geographic reach, growth potential and profitability,” Accor Chief Executive Officer Sebastien Bazin said in the statement. “We are positioning ourselves as a key player in the current industry consolidation process.”