Ardagh Glass Group has agreed to buy the glass business of Britain's Rexam for €660 million ($867 million).
The cash deal will see Ardagh double in size and become Europe's third-largest glass container maker.
Ardagh said the deal would add 13 glass plants and 3,600 staff in Denmark, Germany, Holland, Poland and Sweden to its existing nine glass plants and boost annual sales to €1.25 billion.
Rexam, the world's biggest can maker, said the deal was consistent with its plans to focus on high-growth and emerging markets and that it would use proceeds to reduce its borrowings.
