CCI approves Apollo Hospitals’ pharmacy business rejig

On Monday, the Competition Commission approved the restructuring of Apollo Hospitals Enterprise Ltd (AHEL) pharmacy business and its acquisition by investors.

In November 2018, AHES announced that it would relieve its pharmacy business to Apollo Pharmacy for Rs 527.8 crore as a part of a restructuring exercise.

Apollo Medicals Pvt Ltd (AMPL) will wholly own Apollo Pharmacy Ltd (APL) with 25.5 per cent stake of AHEL following the transaction.

ENAM Securities with 44.7 per cent, Jhelum Investment Fund 1 with 19.9 per cent and Hemendra Kothari with 9.9 per cent stake are the other three investors in AMPL.

In a tweet, The Competition Commission of India (CCI) said, “approves restructuring of pharmacy business of Apollo Hospitals Enterprise Limited and its subsequent acquisition by Enam Securities Private Limited, Jhelum Investment Fund I, and Hemendra Kothari.”

AHEL, as per the new agreement, will be a long-term exclusive supplier for APL. AHEL will enter into the agreement with APL to license the ‘Apollo Pharmacy’ brand to the stores and online pharmacy operations.

The company in a statement said that the move followed a review of a long-term strategy for health care services along with the pharmacies of the firm.

On Monday, the fair-trade regulator tweeted that it “approves the acquisition of up to 25.02 per cent share of Federal-Mogul Goetze by Icahn Enterprises, American Entertainment and IEH FMGI Holdings”.

Federal-Mogul Goetze is a manufacturer of auto components in India and, used for automotive, locomotive and industrial applications, a combination notice filed with CCI said. The company is also engaged in the sale of auto components in India.

IEH FMGI Holdings is a wholly-owned subsidiary of American Entertainment. American Entertainment Properties Corp and Icahn Enterprises are diversified holding companies and are engaged in various businesses including automotive, energy and investment among others.