CCI gives nod for ‘internal reorganisation’ of Fortis group

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

By: PTI | New Delhi | Published:October 24, 2016 1:08 pm
CCI, Competition Commission, Fortis group, Fortis internal reorganisation, Fortis, business news, companies news, latest news, Indian express In a tweet Monday, the Competition Commission of India (CCI) said it has approved the “combination involving internal reorganisation of the Fortis group”

The Competition Commission 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 Monday, the Competition Commission of India (CCI) said it has approved the “combination involving internal reorganisation of the Fortis group”.

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As per the notice submitted to the fair trade regulator, there would be three “inter-linked and inter-dependent” steps under the rejig.

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

In the final step, SRL will be amalgamated into Fortis Malar 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 between NLC India and Damodar Valley Corporation (DVC).

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