The Competition Commission of India (CCI) has approved the merger of Indovida India with and into EPL.

Under the transaction, Indovida India will be absorbed into EPL.

As the surviving entity after the merger, EPL will issue shares to Indovida India’s shareholders on a proportionate basis as part of the arrangement.

Indovida India is a recently incorporated company in India and a wholly owned unit of Indorama Netherlands.

Both Indovida India and Indorama Netherlands are part of the group led by Indorama Ventures Public Company (IVL) and its affiliates.

The IVL Group has operations spanning fibres, packaging, recycling and speciality chemicals.

EPL is an India-based listed company involved in the manufacture and sale of packaging products.

The CCI said a detailed order will be issued later.

Earlier this year, the boards of EPL and Indovida India approved the merger, subject to regulatory, court and shareholder approvals.

The combined group is expected to record annual revenue of about $1bn and have a valuation of nearly $2bn.

Indovida India is supported by Indorama Ventures, which will own a 51.8% stake of the merged entity, while EPL is backed by Blackstone, which will hold 16.6%.

Hemant Bakshi will lead the merged group as group CEO. Sunil Marwah will remain in charge of the Indovida business within the combined company and will report to Bakshi.

Separately, 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.