CCI nod for Apollo restructuring: Healthco, Keimed to merge into Healthtech; separate listing plan on track

Fair trade regulator Competition Commission of India (CCI) on Tuesday approved a multi-layered restructuring plan involving Apollo Hospitals group entities—Apollo Healthco, Keimed, and Apollo Healthtech Ltd.The clearance comes after Apollo Hospitals Enterprise Ltd (AHEL) announced in June that its board had approved the separate listing of its omnichannel pharmacy and digital health businesses within 18–21 months as part of a broader reorganisation aimed at unlocking value, PTI reported.According to the regulator, the restructuring will take place in several stages under a composite scheme of arrangement cleared earlier this year by the boards and audit committees of Apollo group entities.As part of the transaction, the identified business undertaking of AHEL will be demerged into Apollo Healthtech Ltd (AHTL). This will be followed by the merger and amalgamation of Apollo Healthco Ltd (AHL) and Keimed Pvt Ltd with AHTL, consolidating the healthcare and distribution businesses.Subsequently, AHTL’s equity shares will be listed on stock exchanges. In the final stage, AHTL will acquire 74.5 per cent of Apollo Medicals Pvt Ltd (AMPL) from existing shareholders under a share purchase agreement with AHL, AMPL and its stakeholders.“CCI approves the proposed combination involving demerger of the identified business undertaking of AHEL into AHTL, merger and amalgamation of AHL and Keimed with and into AHTL, and acquisition of 74.5 per cent shareholding of AMPL by AHTL,” the regulator said in a post on X.AHL currently operates the "Apollo 24|7" platform, offering online doctor consultations, diagnostic test bookings, and pharmacy distribution. Keimed is engaged in wholesale and retail distribution of pharmaceuticals, medical and surgical equipment, and FMCG items.The restructuring scheme is expected to create India’s leading omnichannel pharmacy distribution and digital health platform, with a revenue target of Rs 25,000 crore by FY27. Apollo Hospitals Enterprise MD Suneeta Reddy said the plan “enables shareholders to gain direct shareholding in the country’s largest omni-channel pharmacy and digital health platform.”In a separate release, the CCI also cleared the proposed acquisition of IRB Hapur Moradabad Tollway Ltd, Kaithal Tollway Ltd, and Kishangarh Gulabpura Tollway Ltd by IRB InvIT Fund. Additionally, it approved the acquisition of IRB InvIT Fund units by Anahera Investment Pte Ltd, part of Singapore’s sovereign wealth fund GIC.The anti-trust watchdog further gave approval to Rieter Holding AG and Rieter North America Inc for acquiring OC Oerlikon Textile Holding AG and Oerlikon Textile Inc. Switzerland-based Rieter is a global manufacturer of machinery and components for the textile industry, while the targets produce spinning systems, texturing machines, and non-woven solutions.Deals above a certain threshold require CCI clearance, which ensures fair competition and checks unfair business practices.