NORTH-East workers at Blue Circle are hoping a £3.1bn takeover will provide them with a boost after enduring a year of uncertainty in the industry.

French building materials giant Lafarge confirmed it had agreed the takeover of the UK-based cement group with shares in Blue Circle closing last night up six per cent at 487p.

The deal will create the world's largest cement producer and was revealed just weeks after a review of operations at Blue Circle saw 20 redundancies from its 180 staff at its Eastgate operation in Weardale.

Those changes followed the three month review of production instigated after the group narrowly averted a first hostile takeover bid from Lafarge.

The company said it was too early to say what the effects of the takeover will be for its workers in the UK, but the integration process is expected to involve many months of negotiations. Blue Circle employs 18,637 staff, of whom 4,779 are based in the UK.

Durham county councillor, John Shuttleworth said: "I hope this move will prove to be positive for the workers at Blue Circle.

"After all that's happened over the last few months the last thing they need is more uncertainty.

"The site needs cash invested in it, and instead of giving shareholders payouts that money could be used in the business."

Blue Circle chief executive Rick Haythornthwaite said the size of the deal reflected the success of his company's own operational improvement programme and the recovery achieved in its Asian market.

He added: ''This recommended offer fully recognises this value and the combined group will offer exciting opportunities for our employees.''

The bid is worth around 495p a share, almost nine per cent higher than the 450p-a-share offer Lafarge made for Blue Circle last year.

Lafarge already owns a 32 per cent stake in Blue Circle, which is a legacy from its earlier bid.

Bertrand Collomb, Lafarge's chairman was delighted to have reached an agreement. It will give his company a far greater presence in the Mediterranean region and also create one of the leading cement groups in Asia