Aster DM Healthcare and Blackstone and TPG-backed Quality Care have decided to merge to create one of India's top three hospital chains.

Aster DM Healthcare and Blackstone-backed Quality Care India have announced a merger deal through a share swap deal. The merger will create one of India's top three hospital chains.

Aster DM Healthcares shares experienced a significant surge, climbing up to 5% intraday, following the announcement of a definitive agreement to merge with Blackstone-backed Quality Care India Limited

Aster DM board has approved merger with Quality Care that makes them third largest healthcare chain by revenue and bed capacity in India.

Based on the swap ratio recommended in the valuation report, the Aster promoters will hold 24 per cent and Blackstone 30.7 per cent in the merged entity

The merged entity, Aster DM Quality Care Limited, will have a combined portfolio of four leading brands: Aster DM, CARE Hospitals, KIMSHEALTH and Evercare. It will have a of network of 38 hospitals and 10,

Aster DM Healthcare, one of India's largest integrated healthcare service providers, has entered into definitive agreement with Quality Care India (QCIL), backed by Blackstone and TPG, to merge, creating one of the country's top three hospital chains.

The merger between Aster DM Healthcare and QCIL, valued at $5.08 billion, forms Aster DM Quality Care, the third-largest hospital chain in India. The entity will operate 38 hospitals with plans to increase bed capacity significantly over the next two years.