CCI approves merger between Aster DM Healthcare and Quality Care India Ltd

The Competition Commission of India (CCI), in its meeting held on April 15, 2025, has approved the proposed merger between Aster DM Healthcare Limited and Quality Care India Ltd, under Section 31(1) of the Competition Act, 2002.

The merged entity 'Aster DM Quality Care' will be jointly controlled by Aster Promoters and Blackstone and brings together the strengths of two leading healthcare providers with a common vision of expanding access to high-quality medical care across the country.

Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare, said, "For the merger to complete, the CCI approval is an important milestone, and we are happy that we got the approval from regulatory authority. The merger of Aster DM Healthcare and Quality Care India is not merely a consolidation of resources, but a convergence of vision, expertise, and a shared commitment to building one of the largest and most impactful healthcare networks in the country. The approval reflects the strength of our combined vision and our collective potential to enhance healthcare access and quality.

The integration of Aster and Quality Care's extensive networks and operational expertise will significantly strengthen our capacity to deliver world-class healthcare, foster innovation, and elevate patient outcomes. Together, we are setting the stage for a new era in healthcare."

The merged entity 'Aster DM Quality Care Limited' will have a combined portfolio of four leading brands: Aster DM, CARE Hospitals, KIMSHEALTH and Evercare. The combined entity will have a network of 38 hospitals and 10,150+ beds spread across 27 cities making it one of the top 3 hospital chains in India. The merged entity is expected to grow to ~13,300 beds by FY27 through internal accruals/cash on hand with a mix of greenfield and brownfield opportunities.

The merged entity is expected to unlock significant synergies that will drive growth, enhance operational efficiency, and elevate the standard of patient care across the network. It will enable the sharing of best practices, standardization of clinical protocols, and collaboration across specialties-leading to improved outcomes and service quality. Additionally, the increased scale will support greater investment in advanced healthcare technologies and digital platforms, fostering innovation and enabling more seamless patient experiences.

The merger transaction is expected to be completed during this year.

Shares of Aster DM Healthcare Limited was last trading in BSE at Rs. 499.60 as compared to the previous close of Rs. 500.35. The total number of shares traded during the day was 35274 in over 1589 trades.

The stock hit an intraday high of Rs. 509.90 and intraday low of 497.35. The net turnover during the day was Rs. 17710415.00.

Source : Equity Bulls

Keywords

AsterDMHealthcare INE914M01019 HealthcareServices CCI Approval Merger QualityCareIndia