CCI approves Manipal Health’s 100% acquisition of Columbia Asia Hospitals

CCI approves Manipal Health's 100% acquisition of Columbia Asia Hospitals

The Competition Commission of India (CCI) gave its nod to Manipal Health Enterprises Pvt Ltd (MHEPL) for the acquisition of 100% shareholding in Columbia Asia Hospitals Pvt Ltd (CAHPL).

“Commission approves acquisition of 100% shareholding of the Columbia Asia Hospitals by Manipal Health Enterprises,” the regulator said in a Twitter update on Friday.

The development comes after the Bengaluru-based MEHPL had entered into a share purchase agreement with the US-based hospital chain in October last year. The deal was valued at Rs 2,100 crore, according to reports.

“The strong clinical expertise and breadth of services of MHEPL, complemented by the strengths of CAHPL in clinical and service quality, will ensure that the combined entity post the Proposed Combination would be uniquely placed to improve access and address the growing demand and expectations for high quality tertiary and quaternary healthcare in the country,” MHEPL had said in its notice to the CCI.

The combined entity would have a presence of 27 hospitals across 15 cities with over 7,300 beds and a pool of more than 4,000 doctors and over 10,000 employees treating over 4 million patients annually, the Ranjan Pai-led MHEPL had said in a statement.

This would make the merged entity the second-largest hospital chain in the country after Apollo Hospitals.

The acquisition will help Manipal Health strengthen its presence in its core market in Bengaluru while expanding its presence in the National Capital Region, Pune and Kolkata, Dilip Jose, managing director and CEO of MHEPL had said.

The merger will also help address the growing demand and expectations for high-quality tertiary and quaternary healthcare in the country, the statement earlier said.

The Indian hospital chain had posted revenues of about Rs 2,100 crore in FY20 and was funding the transaction through a mix of loans and a rights issue aided by its investors, including private equity fund TPG Capital.

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