MUMBAI: Despite the stress on performance due to regulatory restrictions, the value of merger and acquisition (M&A) deals in hospital sector jumped by record 155 percent at ₹7,615 crore in FY19, a report said Monday. The total value of M&A transactions in the hospital sector in FY19 recorded an increase of 155 percent amounting to ₹7,615 crore, the highest value in the sector in over five year, as against transactions worth ₹2,991 crore done in FY18, according to rating agency Icra. Two largest transactions in FY19 were the acquisition of stakes Fortis Healthcare for around ₹4,000 crore and Max Healthcare for ₹2,351 crore. In both these cases, the deal has been signed at a premium to the then prevailing market price, it noted. Further, the recent regulatory actions have increased the gestation period further, thus increasing the funding requirement of the sector and necessitating consolidation, he said.

Source: Mint May 06, 2019 12:22 UTC