Paints maker Consorcio Comex SA de CV agreed to be acquired by chemicals maker PPG Industries Inc. for $2.3 billion, after the Mexican company's deal with U.S. rival Sherwin-Williams Co. fell through earlier this year.

PPG's shares rose 3 percent after the announcement of the deal, which will help the company expand its paints offering in Mexico and Central America.

Mexico's federal competition watchdog rejected Sherwin-Williams' proposed $2.34 billion takeover of Comex twice last year, saying it would create unfair market conditions.

Comex, a family-owned company founded in 1952, said in May it was suing Sherwin-Williams because it had not tried hard enough to honor the deal.

Privately held Comex has eight manufacturing plants and six distribution centers and had sales of about $1 billion in 2013.

PPG, which had sales of more than $3 billion in 2013, said in January that it was looking to spend $3 billion to $4 billion on acquisitions and share buybacks over 18 to 24 months.

PPG shares closed at $204.05 on Friday on the New York Stock Exchange.