CCI Approves Quality Care Acquisition by Blackstone & TPG

CCI has approved two separate statements for BCP Asia II to acquire about 72.49% and Centella Mauritius Holdings Ltd to acquire approximately 24.16% stakes in Quality Care India Ltd.

The Competition Commission of India (CCI) has approved the stake acquisition by Blackstone and TPG in Quality Care India Ltd (QCIL), a multi-speciality healthcare provider operating under the brand name 'CARE Hospitals' across India.

In two separate announcements, CCI shared its approval of the acquisition of approximately 72.49% and 24.16% stakes in Quality Care India Ltd by BCP Asia II and Centella Mauritius Holdings Ltd, respectively.

BCP Asia II is under the control of funds advised and managed by affiliates of Blackstone Inc. At the same time, Centella Mauritius Holdings is a special-purpose investment vehicle operated by affiliates of TPG Inc.

Quality Care India Limited, established in 1997, is one of the leading multispecialty healthcare providers in India. Under the 'CARE Hospitals' brand, QCIL operates a network of 16 hospitals and one clinic, offering a total of approximately 2,400 beds across seven cities in six states in India.

Deals involving substantial stakes in companies including QCIL are subject to approval by CCI, which plays a crucial role in monitoring unfair business practices and ensuring fair competition within the Indian marketplace.

This Blackstone and TPG investment are expected to bolster further the growth and quality of healthcare services provided by QCIL, benefitting patients and stakeholders alike.

It underlines the continued interest of global investment firms in India's rapidly expanding healthcare sector, reflecting the nation's potential for growth and development in this critical industry.

The healthcare industry's mergers and acquisitions (M&A) market is undergoing a period of sustained transformation. Over the past few years, there has been a significant surge in M&A activities within the healthcare sector.

According to a recent report by Grant Thornton Bharat, India's healthcare and life sciences sector has witnessed a remarkable 85% surge in the total deal value, exceeding $4.4 billion during the first half of 2023 compared to the same period in 2022.

The report highlights that a few high-value transactions were pivotal in driving the total transaction value up significantly, soaring from $1.2 billion in Q1 2023 to $4.4 billion in H1 2023.

One of the noteworthy transactions in the healthcare sector during this period was Temasek's announcement of a $2 billion investment in Manipal Health, aimed at increasing its stake by 41% to attain a controlling share in India's second-largest multispecialty hospital chain. Another key transaction in the multispecialty healthcare segment involved the Blackstone Group's investment of $560 million in CARE Hospitals.

Bhanu Prakash Kalmath, partner and National Sector Leader '“ Lifesciences and Healthcare at Grant Thornton Bharat LLP, emphasised the significance of these transactions in driving the healthcare sector's growth trajectory.

These investments underscore investors' continued interest and confidence in India's healthcare and life sciences industry, signalling a positive outlook for its future development and expansion.