CCI Approves Advent's Strategic Investments in Apollo Healthco and Keimed Merger

The Competition Commission of India (CCI) has approved Advent's acquisition in Apollo Healthco through Rasmeli and the subsequent Keimed merger. Advent will make a minority investment in AHL, while AHL will acquire shares in Keimed. Advent focuses on multiple sectors including healthcare.

The Competition Commission of India (CCI) has given the green light to a proposed combination involving Advent's acquisition in Apollo Healthco through Rasmeli, along with the subsequent merger of Keimed into Apollo Healthco. According to CCI's statement on Tuesday, Rasmeli will make a minority investment in Apollo Healthco Limited (AHL) over two tranches, thereby gaining certain strategic rights.

After this investment, AHL plans to acquire shares in Keimed through phased primary and secondary transactions. The ultimate goal is to merge Keimed into AHL following the investment by Rasmeli.

Before the Rasmeli investment, Apollo Hospitals Enterprise Limited (AHEL) will subscribe to equity shares of AHL through preferential allotment and bonus issuance, as stated by CCI. Rasmeli Limited, an entity incorporated in Cyprus, is engaged primarily in holding investments and has no activities or presence in India.

Rasmeli is indirectly controlled by entities managed by Advent International, L.P. (Advent), a firm focusing on investments across sectors such as business and financial services, healthcare, industrial, retail, consumer and leisure, and technology.

Apollo Hospitals Enterprise Limited in India provides a comprehensive range of healthcare services including operation and management of tertiary and secondary hospitals. The company also offers consultancy, branding, and operational management support for healthcare providers. Additionally, AHEL runs retail healthcare services, including primary care clinics, birthing centres, surgery centres, diabetes management centres, dental and dialysis centres, and diagnostic services.

Apollo Healthco operates the 'Apollo 24|7' platform, facilitating services such as booking doctor appointments and diagnostic tests. It also functions in the pharmacy distribution sector, serving as a wholesale distributor for pharmaceuticals, FMCG, OTC products, and private label products.

(With inputs from agencies.)