Carlyle deal with Naresh Trehan's Global Health gets CCI nod

CCI says deal in which Carlyle will get 26% stake does not raise anti-competitive issues

The proposed stake purchase in Naresh Trehan-promoted Global Health Pvt Ltd by private equity major Carlyle Group has received the green signal from anti-trust watchdog Competition Commission of India (CCI).      

Approving the deal that would see Carlyle Group acquiring over 26 per cent stake in Global Health, CCI said it does not raise any anti-competitive concerns.      

Global Health, promoted by well-known heart surgeon Trehan, operates various medical facilities including super-speciality hospital 'Medanta - the Medicity' in Gurgaon.      

In an order dated November 27, CCI said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".      

The Commission also noted that there is presence of larger pharmaceutical companies, contract research organisations and hospitals providing similar products/ services, in the Indian market.      

As part of the transaction, Anant Investments would acquire about 26.8 per cent stake in Global Health.      

Mauritius-based Anant Investments is a special purpose acquisition vehicle, owned and controlled by funds managed by the Carlyle Group.      

Under the multi-layer deal, Anant Investments has entered into a share purchase pact with GL Asia Mauritius II Ltd for acquisition of 26.8 per cent stake in Global Health.      

Besides, there is a subscription agreement between Anant Investments, Naresh Trehan, Naresh Trehan & Associates Health Services Pvt Ltd, and Global Health for acquisition of convertible preference shares representing 0.95 per cent stake in the target company on a fully diluted basis.      

In addition, there is a shareholders pact between the same set of entities. This is for regulating the relationship of the acquirer and the promoters in relation to Global Health Pvt Ltd and its subsidiaries from time to time.      

According to CCI, Carlyle Group does not have investment in any company that is into the businesses of providing hospital services in India, according to the order.     

However, the group has stakes in two companies -- Claris LifeSciences and Pharmaceutical Product Development -- which are operating in the country's healthcare sector, it added.      

Though owing these stakes "exhibit certain degree of relationship between the business of the said companies and Global Health, at different levels of the production chain, such relationship is insignificant," CCI noted.      

Anant Investments had sought CCI approval for the deal on October 30.