The Competition Commission of India (CCI) has given the green light for the merger of Indovida India with EPL. This strategic move will see Indovida India being absorbed into EPL, with the surviving entity, EPL, issuing shares to Indovida India’s shareholders on a proportionate basis as part of the arrangement.
Indovida India, a recently established company in India, is a wholly owned subsidiary of Indorama Netherlands. Both Indovida India and Indorama Netherlands are part of the group led by Indorama Ventures Public Company (IVL) and its affiliates, which have operations in fibres, packaging, recycling, and specialty chemicals.
On the other hand, EPL is a listed company based in India that specializes in the manufacturing and sale of packaging products. The merger between EPL and Indovida India was approved earlier this year by both companies’ boards subject to regulatory, court, and shareholder approvals.
The combined group is expected to generate an annual revenue of approximately $1 billion and have a valuation of nearly $2 billion. Indovida India is supported by Indorama Ventures, which will hold a 51.8% stake in the merged entity, while EPL is backed by Blackstone, which will have a 16.6% stake.
Hemant Bakshi will lead the merged group as the group CEO, with Sunil Marwah continuing to oversee the Indovida business within the combined company and reporting to Bakshi.
In a separate development earlier this year, Indorama Ventures, Nigerian Breweries, and Genesis Power & Energy Solutions agreed to establish a large-scale recycled polyethylene terephthalate facility in Lagos, Nigeria.
This article, “India’s competition regulator clears Indovida India-EPL merger,” was originally published by Packaging Gateway, a GlobalData-owned brand.
Please note that the information provided in this article is for general informational purposes only and should not be considered as professional advice. It is important to seek expert advice before making any decisions based on the content of this article.
