MONTREAL—Canada’s largest telecommunications company BCE Inc. said Friday it has reached an agreement to buy Astral Media Inc. for $3.38 billion in cash and stock.

The transaction, valued at $50 per share, will give the Montreal-based company a slate of media assets that include television channels and radio stations across the country. It’s also a significant premium on the price of Astral shares, which closed at $36.25 on the TSX Thursday.

BCE, which owns Bell Media, said the deal includes $380 million in debt.

“Bringing together two respected and longstanding Montreal brands, Bell’s acquisition of Astral firmly establishes our company as Quebec’s media leader,” said BCE president and CEO George Cope in a release.

“Astral’s strong financial position enables Bell to further accelerate our significant investment in broadband innovation across Quebec.”

Astral is Canada’s largest pay and specialty TV broadcaster, owning 83 radio stations in 50 Canadian markets, and the third-largest outdoor advertising company.

Bell would acquire Astral’s slate of television stations that include HBO Canada, the Movie Network and the Family Channel, as well as radio stations under brands like Virgin Radio and EZ Rock.

“We believe that the transaction with Bell is an excellent opportunity for Astral, its shareholders and employees,” said Astral president and CEO Ian Greenberg, who will join BCE’s board of directors.

“After 15 years as commercial partners, we know each other well and share many important values. The fit between our two companies is a natural and I look forward to seeing our brands become even stronger as part of the Bell family.”

The transaction will require approval from the Canadian Radio-television and Telecommunications Commission and the Competition Bureau before it’s completed.

BCE’s offer is valued at $50 per share for Astral’s non-voting shares, and $54.83 for the voting class.

Shareholders of Astral would receive 75 per cent in cash and 25 per cent in stock.