India: Apollo Hospitals’ pharma business deal approved by CCI

The Competition Commission of India (CCI) on Monday, September 23, stated it has approved the restructuring of Apollo Hospitals Enterprise’s pharmacy business and its subsequent acquisition by certain investors.

Apollo Hospitals in November 2018 had announced that it would divest its front-end pharmacy business to Apollo Pharmacy for a lump sum cash consideration of 5.28 billion rupees (US$74.5 million) crore as part of a restructuring exercise.

The CCI in a tweet on Monday stated it “approves restructuring of pharmacy business of Apollo Hospitals Enterprise Limited and its subsequent acquisition by Enam Securities Private Limited, Jhelum Investment Fund I, and Hemendra Kothari.”

.@CCI_India approves restructuring of pharmacy business of Apollo Hospitals Enterprise Limited and its subsequent acquisition by Enam Securities Private Limited, Jhelum Investment Fund I, and Mr. Hemendra Kothari.

— CCI (@CCI_India) September 23, 2019

Under the new structure, Apollo Hospitals will be the exclusive supplier for Apollo Pharmacy under a long-term supplier agreement. 

Full Content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.