On 29th October 2024, the Competition Commission of India (CCI) has approved the proposal of Fortis Healthcare Limited (FHL), a multi-speciality hospital chain in India, to acquire an additional 31.52% stakes in Agilus Diagnostics Limited (Agilus).
- Following the transaction, the shareholding of FHL in Agilus will increase from current 57.68% to 89.2%.
- In August 2024, FHL announced to acquire a 31% stake in Agilus for Rs 1,780 crore valuing Agilus at Rs 5,700 crore.
Points to Note:
i.FHL is mainly engaged in providing integrated healthcare delivery services such as medicare, healthcare, diagnostics, among others. FHL’s diagnostics services business is being undertaken mainly through Agilus.
ii.While, Agilus is engaged in establishing, managing, maintaining clinical reference laboratories and other laboratories for providing testing and diagnostic services.
- It also offers various corporate wellness services and preventive care health packages which include several pathology and radiology tests including home collection services.
CCI Approved Merger of Diliigent Power into DB Power & Reorganisation of Decore Thermal Power
On 29th October 2024, CCI has approved the proposed combination inter alia envisages the merger of Diliigent Power Private Limited (DPPL) into DB Power Limited (DBPL), a wholly-owned subsidiary of DPPL, and the reorganization of Decore Thermal Power Private Limited (DTPPL) pursuant to the buyback of certain securities.
Points to Note:
i.DBPL has established 1200 MegaWatt (MW) Coal-based Power Plant in the state of Chhattisgarh.
ii.DTPPL is mainly a holding company for its wholly-owned subsidiary DB (Madhya Pradesh (MP)) Limited, which currently holds small portion of land in Singrauli district, MP.
CCI Approved Temasek, Apax Partners Additional Stake Buy in Thoughtworks Holding Inc.
CCI has approved the proposed combination involving acquisition of additional stake in Thoughtworks Holding, Inc. by London (the United Kingdom)-based Apax Partners Limited Liability Partnership (LLP) (AP Funds) and Temasek Holdings (Private) Limited (Temasek).
- In August 2024, Thoughtworks announced that it has signed a definitive merger agreement pursuant to which an affiliate of funds advised by AP Funds will buy the shares of the company for a total enterprise value of nearly USD 1.75 billion.
Key Points:
i.Apax Partners (AP Funds) will acquire stakes in Thoughtworks (Target), which is a global technology consultancy corporation through its Special Purpose Vehicle (SPV), Tasmania Midco LLC (Acquirer).
- AP Funds has also raised and advised funds with cumulative commitments of almost USD 80 billion.
ii.Also, Temasek will acquire the shareholding in Thoughtworks through its indirect wholly owned subsidiary Nevado Investments Pte. Ltd. (Nevado), a limited company incorporated in Singapore.
iii.The acquisition by the investment funds advised by “AP Funds” of additional shareholding in the Target such that after the proposed transaction, the Target will be wholly owned by the AP Funds (through the Acquirer) with Temasek (through Nevado) which will hold nearly 10% of the Target’s equity as a minority non-controlling passive investor (Proposed combination).
CCI Approved Acquisition of STT GDC by Ruby Asia and Singtel
CCI has approved the acquisition of shares of ST Telemedia Global Data Centres (GDC)Pte. Limited (STT GDC), a wholly owned subsidiary of Singapore Technologies Telemedia by Ruby Asia Holdings II Pte. Ltd. (Ruby Asia), a SPV indirectly wholly owned by various subsidiaries of KKR & Co. Inc. and Singtel Interactive Pte. Limited (Singtel), which is further subject to compliance of certain voluntary commitments submitted by the parties.
Key Points:
i.In June 2024, STT GDC, KKR and Singtel jointly announced that they had signed a definitive agreements under which a KKR-led consortium of KKR and Singtel will invest USD 1.3 billion (or Singapore Dollar (SGD) 1.75 billion) in STT GDC via redeemable preferable shares, with detachable warrants.
- Following exercise of warrants in full, the consortium will make an additional investment of USD 920 million (SGD 1.24 billion).
- This transaction marks the largest infrastructure investment in Southeast Asia region to date in 2024.
ii.STT GDC is a data center provider with a global platform operating across various countries like: Singapore, the United Kingdom (UK), Germany, India, Thailand, among others.
- It is operating in India through its indirect subsidiary named STT Global Data Centres India Pvt. Ltd. (STT GDC India) which offers critical services such as: high-quality collocation, connectivity, and round-the-clock support services.
About Competition Commission of India(CCI):
It is a statutory body constituted under Competition Act, 2002.
Chairman- Ravneet Kaur
Headquarters- New Delhi, Delhi
Established- 2003
