In a significant development within the healthcare industry, Aster DM Healthcare has announced a strategic merger with Care Hospitals. This merger expected to create a substantial healthcare conglomerate and marks pivotal consolidation aimed at enhancing healthcare services, expanding reach, and improving patient outcomes for the Indian healthcare sector. 

Sources familiar with the matter suggest that the merger will result in the formation of a new entity, likely to be named Aster DM Quality Care Pvt. Ltd. The new entity will benefit from an extensive network of hospitals, clinics, and healthcare facilities, broadening its geographical footprint and expanding its service offerings from both majors.

Aster DM Healthcare Limited is a multinational for-profit private hospital network founded by Dr. Azad Moopen in 1987. The company has its corporate headquarters in Dubai, UAE, and is registered in Bengaluru, India. Aster DM Healthcare currently operates hospitals, medical centres, diagnostic centres, laboratories and pharmacies in six GCC countries and India. 

CARE Hospitals is a chain of multi-specialty healthcare hospitals with 16 hospitals in 7 cities across 6 states of India. The hospital initially started as a specialty center for heart care and subsequently expanded to include additional specialties. Care Hospitals is primarily owned by Blackstone. The private equity firm acquired a majority stake in Care Hospitals from TPG Rise funds in a deal completed in May 2023. 

Aster DM Healthcare, valued at approximately ₹19,068 crore ($2.27 billion) and Care Hospitals, valued at over ₹16,800 crore ($2 billion), the combined entity would become the third-largest hospital chain in India. Azad Moopen chairman and managing director of Aster DM Healthcare is expected to take on the role of executive chairman, with a joint management team overseeing the merged operations, said sources.

A potential merger between Aster DM Healthcare and Care Hospitals is expected to create not only greater services to the patients but also superior value for shareholders of both entities. 

The deal is under regulatory review and will require approval from competition authorities.