CCI Approves Kids Clinic India's Acquisition Of Apollo Fertility And Apollo Specialty Hospitals

On 1 September, the Competition Commission of India (CCI) approved the proposed acquisition of up to 100% equity shareholding in Apollo Fertility Centre Private Limited (AFCPL) and Apollo Specialty Hospitals Private Limited (ASHPL) by Kids Clinic India Limited (KCIL), which operates the Cloudnine chain of hospitals.

The transaction will take place in three steps. First, KCIL will acquire up to the entire equity shareholding in AFCPL and ASHPL. As part of the consideration, Apollo Health and Lifestyle Limited (AHLL) will receive equity shares and optionally convertible debentures in KCIL amounting to 9.9% of KCIL's fully diluted share capital.

The transaction will also involve the issuance of certain equity shares in KCIL to Arvon Investments Pte. Limited (Arvon), an indirect wholly owned subsidiary of Temasek that functions as an investment holding company.

KCIL operates the Cloudnine chain of super-specialty hospitals, focusing on maternity, gynaecology, paediatrics and fertility services. Its centres are located in cities including Bengaluru, Delhi NCR, Mumbai, Pune, Chennai, Hyderabad, Lucknow, Ludhiana and Chandigarh.

AHLL operates primary healthcare clinics and diagnostic services and is wholly owned by Apollo Hospitals Enterprise Limited, a publicly listed company.

AFCPL, which is currently wholly owned by AHLL, operates fertility clinics under the Apollo brand. Its services include assisted reproductive treatments such as in vitro fertilisation (IVF), embryo freezing and genetic testing.

ASHPL operated three business segments, namely Cradle, Fertility and Spectra, until June 2024.

The CCI stated that a detailed order would follow.