On January 8, 2021 The Competition Commission of India (CCI) gave approval to the acquisition of 100% shareholding of Columbia Asia Hospitals Private Limited(CAHPL) by Manipal Health Enterprises Private Limited(MHEPL).
- After this acquisition MHEPL will become India’s 2nd largest healthcare chain, after Apollo Hospitals.
- In regard to the acquisition MHEPL has entered into a share purchase agreement with CAHPL in November 2020.
Details about the Acquisition:
i.As per the market sources, the deal has been valued at Rs 2,100 crore.
ii.The combined entity will have 27 hospitals across 15 cities with more than 4000 doctors and over 10,000 employees.
i.The combined entity will enhance access to healthcare in India as the acquisition combines the strong clinical expertise and breadth of services of MHEPL and the strengths of CAHPL in clinical and service quality.
ii.The merger will help to address the increasing demand and expectation for high quality healthcare in India.
Info About the Companies:
Manipal Health Enterprises Private Limited(MHEPL):
i.MHEPL, a multi-specialty healthcare provider is a part of Manipal Education and Medical Group (MEMG).
ii.It is not engaged in any business activity outside India, except in Malaysia.
Head Office– Bengaluru, Karnataka
Chairman– Dr. H Sudarshan Ballal
MD & CEO– Dilip Jose
Columbia Asia Hospitals Private Limited(CAHPL):
i.CAHPL, a healthcare company is a part of International Columbia US LLC, an international healthcare group, which operates a chain of modern hospitals across India, China and Africa.
ii.It does not engage in any business activities outside India.
iii.It is one of the 1st healthcare companies to enter India through 100% foreign direct investment (FDI) route.
Management Office– Bangalore, Karnataka
Chairman & CEO– Dr Nandakumar Jairam
Recent Related News:
On November 27, 2020 The Competition Commission of India (CCI) approved the following acquisition and amalgamation under Section 31(1) of the Competition Act, 2002.
i.Acquisition of Rivigo Services Private Limited (Rivigo) by Spring Canter Investment Ltd (SCIL) via subscription of compulsorily convertible preference shares.
ii.Proposed amalgamation of Srikalahasthi Pipes Limited (SPL) with and into Electrosteel Castings Limited (ECL).
About Competition Commission of India (CCI):
Established by– The Central Government with effect from 14th October 2003
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta( a 1981 Batch IAS officer)