CCI Approves Merger of Aster DM Healthcare with Quality Care India Ltd.

The approved transaction includes a merger of Quality Care India Limited (QCIL) into Aster DM Healthcare Limited (Aster) through a court-sanctioned scheme of amalgamation.

In a significant move within India's healthcare sector, the Competition Commission of India (CCI) has approved a strategic merger involving Aster DM Healthcare Limited, Quality Care India Limited (QCIL), BCP Asia, and Centella Mauritius Holdings Limited. The transaction will result in the consolidation of two prominent healthcare networks, enhancing the scale and reach of healthcare services across the country.

Details of the Proposed Transaction

The approved transaction includes a merger of Quality Care India Limited (QCIL) into Aster DM Healthcare Limited (Aster) through a court-sanctioned scheme of amalgamation. Following the completion of the merger, the combined entity will operate under a new name: Aster DM Quality Care Limited, signifying the integration of the two healthcare systems.

Prior to the formal merger, Aster will acquire a 5.0% equity stake in QCIL from BCP Asia II TopCo IV Pte. Ltd. (BCP Asia) and Centella Mauritius Holdings Limited (Centella). This stake purchase will be executed through the issuance of new primary shares by Aster, enabling the incoming investors to become minority shareholders in the enlarged entity.

As part of the restructured shareholding, Centella will hold less than 10% equity in the merged company, with no special or control rights, ensuring that the governance of the new entity remains with Aster's existing management and stakeholders.

About the Involved Entities

Aster DM Healthcare is one of India’s leading private healthcare providers, operating through an extensive network of:

• 19 hospitals with a combined bed capacity of 4,867

• 13 clinics

• 215 pharmacies

• 232 labs and patient experience centers

Spread across six Indian states, Aster’s services span the entire healthcare value chain, from primary care to tertiary care. Aster is a part of the larger Aster Group, which also has a significant presence in the Gulf Cooperation Council (GCC) countries.

Quality Care India Limited (QCIL) is a prominent unlisted public company that operates a robust network of multi-specialty hospitals under the brand names CARE Hospitals, KIMS Health, and Evercare. QCIL's healthcare infrastructure includes:

• 26 hospitals and healthcare facilities

• More than 5,150 beds

• Presence in 14 cities across India

• A team of over 2,500 doctors

• 30+ medical specialties

This wide footprint makes QCIL a significant player in regions where Aster is currently expanding, offering potential operational synergies and improved service delivery.

Investment Partners

BCP Asia is a special purpose investment vehicle owned by funds advised and/or managed by Blackstone Inc., one of the world’s largest alternative investment firms. Blackstone has a long-standing interest in India’s healthcare and infrastructure sectors.

Centella Mauritius Holdings Limited, on the other hand, is ultimately owned and controlled by a holding entity advised by TPG Inc. and its affiliates. TPG is a global private equity powerhouse with a diversified portfolio across healthcare, finance, and technology.

Both BCP and Centella currently own and control QCIL, making them instrumental stakeholders in this deal. However, as per the approved structure, their shareholding in the merged entity will be passive and non-controlling in nature.

Strategic Implications of the Merger

The merger of Aster and QCIL marks one of the most notable consolidations in India’s private healthcare sector in recent years. The combined entity will significantly expand its geographical reach, especially in underserved Tier 2 and Tier 3 cities. It also brings complementary strengths together:

• Aster’s strong brand, technological backbone, and GCC experience

• QCIL’s established network of hospitals and experienced clinical workforce

From a market perspective, the merged company is expected to benefit from operational efficiencies, shared resources, enhanced brand value, and a more robust platform to attract both domestic and international patients.

Regulatory and Market Outlook

With the CCI’s approval, the merger will now move forward to secure further regulatory clearances, including approval from shareholders, creditors, and the National Company Law Tribunal (NCLT). Once completed, Aster DM Quality Care Limited will emerge as one of India’s largest integrated healthcare systems with nearly 10,000 hospital beds, positioning itself to compete with other major hospital chains like Apollo Hospitals, Manipal Health, and Fortis Healthcare.

The transaction underscores the increasing trend of consolidation in India’s healthcare landscape, driven by the need for scale, efficiency, and wider service offerings in a post-pandemic world.