Ardagh Group yesterday confirmed that it has formally signed a deal to buy US-based Verallia North America (VNA) for €1.275 billion.

The Paul Coulson-led glass and packaging manufacturer announced earlier this week that it had offered to buy VNA from French group Saint Gobain for $1.7 billion (€1.275 billion).

Yesterday, Ardagh said it had formally agreed to buy VNA and had borrowed $1.27 billion in bonds to fund the purchase.

The company has raised $420 million in senior secured debt at 4.875 per cent, $850 million unsecured senior debt at 7 per cent and a further €250 million at 5 per cent.