Royal Dutch Shell has reached an agreement to buy London-listed Cove Energy for £1.2bn in a bid to tap into East Africa's gas reserves.
Shell Bidco, a subsidiary of the Anglo-Dutch giant, agreed to pay 220 pence per share, an increase of more 10% on its first bid made earlier this year.
The deal still needs approval from the Mozambique government.
Separately, miner Anglo American said it had sold the South African arm of Scaw Metals for about $430m (£269m).
The sale to an investment consortium represents part of Anglo's wider move to focus on core assets.
Shell said the Cove deal would "mark [the company's] entry into exciting new hydrocarbon provinces in Mozambique and Kenya".
"East Africa is a major prospective hydrocarbon province, which has seen a significant increase in exploration activity in recent years."
It added the acquisition represented "significant potential" for liquefied natural gas discoveries offshore in Mozambique and further exploration in East Africa.
The company already has interests in Tanzania.
Shell Bidco executive chairman Michael Blaha said the offer "provides very significant value to Cove shareholders".
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