Ardagh to buy Rexam's glass business

LONDON --Ardagh Glass Group PLC said Tuesday it agreed to buy the glass business of British packaging company Rexam PLC for 660 million euros ($867.7 million).

Rexam Glass, which employs 3,600 people and focuses on the north European market, reported sales of 437 million pounds ($845.4 million; 643.1 million euros) in 2006, the company said in a statement.

"Following the acquisition, Ardagh will double in size and become the No. 3 glass container manufacturer in Europe," Ardagh Chairman Paul Colson said. The company will have an approximately 18 percent share of the European market.

Dublin-based Ardagh will finance the acquisition through new bank loans.

Rexam shares dipped 0.8 percent to 521.5 pence ($10.08; 7.67 euros) on the London Stock Exchange.