Aster DM, Blackstone-backed Quality Care announce merger in $5 bn deal
Subscribe to enjoy similar stories. A mega merger, the largest in Indian healthcare, announced on Friday just created a Top 3 ranker in India’s hospital industry. Bengaluru-based Aster DM Healthcare announced a merger with Blackstone-backed Quality Care India Limited (QCIL) in a deal that will value the combined entity at $5.08 billion ( ₹43,000 crore).
Mint first reported plans for the merger in August 2024. The two companies have merged via a share-swap ratio of 977 shares of Aster for every 1,000 shares of QCIL. Aster shareholders will hold 57.3% and QCIL shareholders 42.7% in the merged entity, Aster DM Quality Care, which will be a listed company.
“The whole idea has been about building the biggest platform, and how do we become the best healthcare provider in India," Alisha Moopen, managing director of Aster DM Healthcare, said. The combined entity will have 10,150 beds, with 38 hospitals across 27 cities. With this deal, the merged entity joins Apollo Hospitals Enterprises and Manipal Health Enterprises in the ranks of the three largest hospital chains of India.
Currently, Apollo has 10,138 beds according to its Q2FY25 investor presentation, and Manipal, more than 10,500 beds, according to its website. Aster DM Quality Care plans to add 3,180 beds in the next two years, bringing its total bed capacity to over 13,000 beds by FY27, according to Moopen. The merger is expected to conclude in 12 months, subject to regulatory approvals.
The combined entity would require approvals from bodies like SEBI, CCI, and NCLT, and shareholders. Blackstone will be the largest shareholder in the merged entity with 30.7% shareholding, followed by Aster’s promoters (the Moopens, 24%). TPG will hold 10.2% with the balance being held
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