New Delhi, March 29 -- Private equity giant Blackstone and Thailand's Indorama Ventures have agreed to combine their packaging businesses in India, creating a $2 billion giant with annual sales of about $1 billion.

backed EPL on Sunday informed exchanges that it has signed definitive agreements with Indorama's rigid packaging venture Indovida India Pvt. Ltd for a merger through a share swap. Once the merger is complete, Indorama will hold 51.8% in the combined entity and become its co-promoter, while Blackstone's holding will stand at 16.6%. Indorama currently owns 24.9% in EPL, earlier called Essel Propack Ltd, while Blackstone owns around 26.5%.

After the merger, EPL will continue as the listed entity. Indorama will nominate at least ...