CCI Approves Fortis Healthcare’s Stake Hike In Agilus Diagnostics And DB Power Merger

In a significant move, the Competition Commission of India (CCI) on Tuesday granted approval for Fortis Healthcare to acquire an additional 31.52per cent stake in Agilus Diagnostics, enhancing its ownership in the diagnostics company from 57.68per cent to 89.2 per cent. The acquisition is set to strengthen Fortis Healthcare’s integrated healthcare delivery services, which span medicare, healthcare, and diagnostics. With this acquisition, Fortis aims to further consolidate its presence in the diagnostics sector, leveraging Agilus Diagnostics as its primary diagnostics business.

The CCI confirmed the approval in a social media post, stating, "Commission approves the acquisition of additional 31.52 per cent share capital of Agilus Diagnostics by Fortis Healthcare " The transaction, valued at RS 1,780 crore, sets the overall valuation of Agilus Diagnostics at approximately RS 5,700 crore.

Fortis Healthcare, a major multi-specialty hospital chain in India, has been actively expanding its portfolio in diagnostics to complement its core healthcare services. The stake hike is expected to enhance operational synergies and broaden Fortis’s healthcare offerings through Agilus, marking a strategic consolidation of its diagnostics services.

In another development, the CCI also approved the merger of Diliigent Power into DB Power, alongside the reorganisation of Decore Thermal Power in connection with a share buyback plan. The CCI’s statement on the proposed combination noted, "CCI approves the proposed combination inter alia envisaging the merger of Diliigent Power into DB Power, and the reorganisation of Decore Thermal Power pursuant to the buyback."

Diliigent Power, operating through its wholly-owned subsidiary DB Power (DBPL), specialises in power generation and offers project management services to DBPL. Decore Thermal Power serves as the holding entity for DB Power (Madhya Pradesh) Ltd, with its assets primarily comprising land holdings in Singrauli District, Madhya Pradesh. The merger and restructuring within DB Power entities aim to streamline operations and consolidate the power generation and project management services under a unified structure.

As per CCI regulations, mergers and acquisitions that cross specific financial thresholds require regulatory clearance to prevent monopolistic practices and to foster fair competition in the marketplace. The approval of these deals aligns with the CCI’s mandate to maintain a balanced competitive environment while enabling corporate restructuring that benefits stakeholders.

These recent approvals from CCI highlight continued consolidation in India's healthcare and power sectors, with companies like Fortis Healthcare and Diliigent Power pursuing strategic acquisitions and restructuring to bolster their market positions.