CCI Approves Manipal's ₹6,400 Cr Sahyadri Acquisition

The acquisition directly adds Sahyadri’s established network of 11 hospitals to Manipal’s portfolio.

The Competition Commission of India (CCI) has formally approved the acquisition of Sahyadri Hospitals by Manipal Hospitals. The regulatory clearance allows for the completion of a deal estimated to be valued at approximately ₹6,400 Cr.

From this transaction, Manipal is set to acquire up to a 100% shareholding in Sahyadri from its current shareholders, including the global investment firm Ontario Teachers' Pension Plan Board, which had held a majority stake.

Background Story

Manipal Hospitals, a major healthcare services provider and a subsidiary of Manipal Health Enterprises, is the acquiring entity. The target is Sahyadri Hospitals, one of the largest private hospital chains in Maharashtra.

Before Manipal secured the deal, a fierce bidding war involved other major players, including IHH Healthcare, EQT, KKR, Blackstone, and Fortis Healthcare. Initial valuations for Sahyadri ranged between ₹3,500 crore and ₹5,500 crore. As Manipal, backed by its primary stakeholder, Temasek, intensified its pursuit, its final bid surpassed its competitors, ultimately leading to definitive agreements with the Ontario Teachers' Pension Plan Board (OTPP).

To finance the substantial acquisition, Manipal reportedly secured a significant portion of the capital, estimated at around ₹5,300 crore, through debt financing from a consortium of international lenders, including Deutsche Bank, Barclays, Japan's MUFG and SMBC, and Singapore's DBS Bank.

Regulatory Process & Finalization

Approval from the CCI was a mandatory final step for the transaction to proceed. As India’s fair trade regulator, the CCI’s role is to assess mergers and acquisitions. The clearance signifies that the CCI found no concerns.

The acquisition directly adds Sahyadri’s established network of 11 hospitals to Manipal’s portfolio. These facilities, located in key regional cities such as Pune, Nashik, Ahilya Nagar (formerly Ahmednagar), and Karad, provide a solid presence in Western India.

The move substantially increases Manipal’s operational scale. Its total hospital count will now stand at 49 across India, while its combined bed capacity will increase to approximately 12,000. The addition of over 1,400 beds from the Sahyadri network represents a significant expansion in Manipal’s healthcare delivery capabilities.

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