Aster and Quality Care merger gets CCI nod, creating one of India’s top three hospital chains

India’s apex fair competition watchdog Competition Commission of India (CCI) has approved the merger between Aster DM Healthcare Limited and Quality Care India Ltd on April 15.

The merged entity ‘Aster DM Quality Care Limited’ will have a combined portfolio of four leading brands: Aster DM, CARE Hospitals, KIMSHEALTH and Evercare. The combined entity will have a network of 38 hospitals and 10,150+ beds spread across 27 cities making it one of the top three hospital chains in India.

Aster DM Quality Care will be jointly controlled by Aster promoters and private equity firm Blackstone which owned stake in Quality Care.   

"For the merger to complete, the CCI approval is an important milestone, and we are happy that we got the approval from regulatory authority. The merger of Aster DM Healthcare and Quality Care India is not merely a consolidation of resources, but a convergence of vision, expertise, and a shared commitment to building one of the largest and most impactful healthcare networks in the country”, Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare, said. “The approval reflects the strength of our combined vision and our collective potential to enhance healthcare access and quality. The integration of Aster and Quality Care’s extensive networks and operational expertise will significantly strengthen our capacity to deliver world-class healthcare, foster innovation, and elevate patient outcomes. Together, we are setting the stage for a new era in healthcare”, he added.

The merged entity is expected to grow to about 13,300 beds by FY27 through internal accruals/cash on hand with a mix of greenfield and brownfield opportunities.

The merged entity is expected to unlock significant synergies that will drive growth, enhance operational efficiency, and elevate the standard of patient care across the network. A company statement said the merger will enable the sharing of best practices, standardization of clinical protocols, and collaboration across specialties - leading to improved outcomes and service quality. Additionally, the increased scale will support greater investment in advanced healthcare technologies and digital platforms, fostering innovation and enabling more seamless patient experiences, it stated.

The merger transaction is expected to be completed during this year. Aster DM Healthcare Limited is one of the largest healthcare service providers operating in India with a strong presence across primary, secondary, tertiary, and quaternary healthcare through 19 hospitals with 5,128 beds, 13 clinics, 203 pharmacies (Operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster), and 254 labs and patient experience centers across five states in India.