CCI approves Indovida India-EPL merger in $2bn deal

The Competition Commission of India (CCI) has approved the merger of Indovida India into EPL, with EPL confirmed as the surviving entity. Under the terms of the transaction, EPL will issue shares to Indovida India’s shareholders on a proportionate basis. The regulator indicated that a detailed order outlining the specific conditions of the approval will be issued at a later date.

The combined group is expected to generate annual revenue of approximately $1bn and hold a valuation of nearly $2bn. Hemant Bakshi has been appointed as group CEO of the merged entity, while Sunil Marwah will remain in charge of the Indovida business and report to Bakshi.

Indovida India is a recently incorporated company and a wholly owned unit of Indorama Netherlands, which is part of the Indorama Ventures Public Company (IVL) group. IVL and its affiliates operate across fibres, packaging, recycling, and speciality chemicals. EPL is an India-based listed company involved in the manufacture and sale of packaging products.

Ownership stakes in the combined entity will see Indorama Ventures holding a 51.8% share, while Blackstone, which backs EPL, will retain a 16.6% stake. The boards of both EPL and Indovida India had previously approved the merger earlier this year, subject to the requisite regulatory, court, and shareholder approvals.

This development follows separate agreements reached earlier this year by Indorama Ventures, Nigerian Breweries, and Genesis Power & Energy Solutions to establish a large-scale recycled polyethylene terephthalate facility in Lagos, Nigeria. The report originates from Packaging Gateway, a GlobalData owned brand.