CCI Approves Merger of Quality Care India with Aster DM Healthcare

The merger, structured as a scheme of amalgamation, will form a new entity named Aster DM Quality Care Ltd.

The Competition Commission of India (CCI) has approved the merger of Quality Care India Ltd. (QCIL) into Aster DM Healthcare, marking a significant development in the healthcare sector.

The merger, structured as a scheme of amalgamation, will form a new entity named Aster DM Quality Care Ltd.

Key Changes in Shareholding Structure

As part of the deal, Aster DM Healthcare will acquire a 5% stake in Quality Care India from existing investors BCP Asia II TopCo IV Pte. Ltd. and Centella Mauritius Holdings Ltd. The acquisition will occur through the issuance of new shares by Aster DM Healthcare.

Following the merger, shareholders of Quality Care India, including BCP Asia, Centella, and other minority investors, will receive equity in the combined entity.

Notably, Centella will hold a minority stake of less than 10% and will not have control rights in the new company.

The merger also signals a shift in the control and operation of healthcare facilities. Quality Care India, backed by global private equity giants like Blackstone and TPG, operates a significant network of healthcare centers across India.

With over 5,150 beds and a workforce of more than 2,500 doctors, QCIL’s presence is extensive, with facilities spanning 14 cities.

Strategic Expansion and Synergies

Aster DM Healthcare, with its substantial presence in India, operates 19 hospitals, 13 clinics, 215 pharmacies, and 232 labs. The combined entity will expand its footprint with the merger, offering enhanced patient care services and specialized treatments nationwide.

The merger creates a larger, more diversified organization that will bring a range of healthcare services to a broader population.

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