Hasbro, the US toy manufacturer, will acquire Peppa Pig owner, Entertainment One, for around $4bn.
Hasbro said the deal would expand its entertainment and “family-oriented storytelling” portfolio. UK-listed Entertainment One owns other preschool titles including PJ Masks.
The American toy giant is behind a diverse range of titles including the My Little Pony and Transformers franchises, as well as the Monopoly board game and Play-Doh.
Entertainment One makes a series of film and television titles including the Peppa Pig cartoon which has been translated into more than 40 languages and broadcast in over 180 territories.