The Competition Commission of India has approved the proposed transaction involving Aster DM Healthcare, BCP Asia, Centella and Quality Care India Limited.

The proposed transaction includes the proposed merger of Quality Care India Limited (QCIL) into Aster DM Healthcare Limited (Aster) by way of scheme of amalgamation, post which Aster will be renamed as Aster DM Quality Care Limited. Prior to the merger, Aster shall purchase 5.0% stake in QCIL from BCP Asia II TopCo IV Pte. Ltd. (BCP Asia) and Centella Mauritius Holdings Limited (Centella) in consideration of a primary share issuance by Aster. The existing shareholders of QCIL i.e., Centella, BCP and certain minority shareholders are proposed to hold certain stake in the merged entity with Centella holding less than 10% stake, without any control rights.

Aster is a healthcare service provider operating in India through 19 hospitals with 4867 beds, 13 clinics, 215 pharmacies, and 232 labs and patient experience centers across 6 states in India. It is a part of the Aster Group.

BCP is owned by funds advised and / or managed by affiliates of Blackstone Inc.

Centella is owned and controlled by an entity, which is advised by the affiliates of TPG Inc. (TPG), the ultimate holding company of the TPG group. TPG, including its subsidiaries and affiliates, are together referred to as ‘TPG Group’.

QCIL, is an unlisted public limited company, owned and controlled by Centella, and BCP. It operates a network of multi-specialty hospitals under the brand name CARE Hospitals, KIMS Health and Evercare across various cities in India. It has a network of 26 healthcare centers operating over 5,150+ beds across 14 cities offer over 30 medical specialties with a team of 2,500+ doctors.

Detailed order of the Commission will follow.

Merger approval under competition law: amalgamation of Quality Care into Aster DM Healthcare cleared with minority stake retention. The Competition Commission of India approved a transaction where Quality Care India Limited will be amalgamated into Aster DM Healthcare Limited, preceded by Aster's purchase of a minority stake via primary share issuance; post merger, existing Quality Care shareholders will hold minority stakes in the renamed merged entity, with one investor holding a non controlling stake below a material threshold.