Fortis group gets CCI green light for internal reorganisation

The watchdog has also cleared RPG Life Sciences' acquisition of assets of Sun Pharmaceutical Industries and Sun Pharma Laboratories

The Competition Commission of India (CCI) has given its green light to the multi-layered reorganisation involving Fortis group companies.

Under the deal, Fortis will be carrying out the rejig that involves three entities -- Fortis Healthcare Ltd (FHL), Fortis Malar Hospitals Ltd (FMHL) and SRL Ltd (SRL).

In a tweet on Monday, the CCI said it has approved the "combination involving internal reorganisation of the Fortis group".

According to the notice submitted to the fair trade regulator, there would be three "inter-linked and inter-dependent" steps under the rejig.

FMHL will be off-loading its healthcare business to FHL as a slump sale on a going concern basis for a certain consideration. Then, FHL will demerge its diagnostics business as well as investment/shareholding in SRL into FMHL, according to the notice.

In the final step, SRL will be amalgamated into FMHL following which the latter's name will be changed to SRL Ltd.

The composite scheme was cleared by the respective boards of the three companies in August.

Besides, the watchdog has cleared RPG Life Sciences' acquisition of assets of Sun Pharmaceutical Industries and Sun Pharma Laboratories.

Separately, CCI has approved the transfer of Raghunathpur power plant to the new joint-venture (JV) between NLC India and Damodar Valley Corporation (DVC).

DVC will be transferring the 1,200 Mw Raghunathpur power plant in West Bengal to the JV. This will be done as a slump sale on a going concern basis.