On October 30, 2013 CCI approved the proposed acquisition of 27.75% of the issued equity share capital of Global Health Private Limited (‘GHPL’) by Anant Investments (‘Anant’).

While reviewing the proposed acquisition, CCI observed that Anant, a special purpose acquisition vehicle incorporated in Mauritius, was owned and controlled by funds managed by the Carlyle Group (‘Carlyle’), a global alternative asset manager having investments across the world. On the other hand, GHPL is engaged in the business of establishing, owning and managing hospitals, in particular Medanta Medicity and Medanta Mediclinic in Gurgaon. In addition, through its subsidiary, Medanta Duke Research Institute Private Limited, GHPL is also engaged in R&D activities related to drugs, surgery, medical devices and equipment.

CCI further observed that none of the funds managed by Carlyle have investments in any company that is engaged in the business of providing hospital services in India. While Carlyle had made investments in two companies operating in the Indian healthcare sector, the value and quantum of products procured from them by GHPL was negligible. Hence, CCI opined that any vertical relationship in this respect was of a negligible nature. In addition, considering the presence of other relatively large pharmaceutical companies, contract research organizations and hospitals providing similar products/services, CCI concluded that the proposed combination was not likely to give rise to any Adverse Effect and, accordingly, approved the proposed combination.

For further information, please contact:

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com