Fortis Seeks CCI Approval to Increase Stake in Agilus Diagnostics

The proposed deal involves Fortis acquiring an additional 31.52% stake from three private equity investors. 

Fortis Healthcare has applied to the Competition Commission of India (CCI) for approval to increase its stake in its diagnostics subsidiary, Agilus Diagnostics. 

The proposed deal involves Fortis acquiring an additional 31.52% stake from three private equity investors. 

Fortis plans to purchase the shares from NYLIM Jacob Ballas India Fund III LLC, International Finance Corporation, and Resurgence PE Investments for INR 1,780 Cr. 

This transaction will raise Fortis's ownership in Agilus from 57.68% to 89.2%. Agilus's valuation is estimated at approximately INR 5,700 Cr.

Agilus Diagnostics operates a network of clinical reference laboratories and provides various diagnostic and testing services. The company is also involved in setting up, managing, and maintaining laboratories for diagnostic purposes.

In its application to the CCI, Fortis asserted that the proposed acquisition would not negatively impact competition in the Indian market. 

“The proposed transaction will not cause, nor is likely to cause, an appreciable adverse effect on competition in any market in India,” stated Fortis in the filing.

Fortis's diagnostics services are largely handled through Agilus, which offers over 3,600 routine and specialized tests and wellness packages. This acquisition is part of Fortis’s broader strategy to consolidate its position in the healthcare diagnostics sector.

Other Regulatory Movements

In a separate development, Aquilo House Pte also sought CCI's approval to acquire shares in Aavas Financiers, a non-deposit-taking housing finance company. Aquilo House, associated with CVC Capital Partners Asia VI, plans to buy a 26.47% stake in Aavas from Kedaara Capital and Partners Group affiliates. This deal necessitates an open offer under Indian takeover regulations.

The CCI's review of both transactions is critical to ensuring these acquisitions do not harm market competition. Fortis's application is particularly significant given its potential impact on the diagnostic services landscape in India.