On December 30, 2020, CCI approved the acquisition of 8% equity shareholding (on a fully diluted basis) of API Holdings Private Limited (‘API’) by TPG Growth V SF Markets Pte. Limited (‘TPG’) by way of primary and secondary acquisitions. TPG would be funded by TPG Global, LLC and its affiliates (‘TPG Global’) and Korea Investment Corporation (‘KIC’). KIC would acquire certain shareholding in TPG Growth V Accord II, Limited Partnership, which would be funding TPG. ^[1]

TPG and KIC do not have any investments in India, but TPG Global has investments in the pharmaceutical and healthcare sector in India.

API is the ultimate parent entity of the API group and is incorporated in India. API is directly and indirectly engaged in various business activities in the pharmaceutical and healthcare sector.

API (including subsidiaries and Medlife) do not have any retail business segment due to the restrictions under the FDI Policy. API has licensed the operations of PharmEasy (an online medical supply store and pharmacy website supplying medicines) to an unrelated and independent third party and has no control over the products offered on the PharmEasy platform. Similarly, Medlife will cease to operate in the B2C business segment and will license this business to an independent third party prior to the implementation of the combination.

CCI did not find any horizontal overlaps in the business activities of API and TPG Global. However, there were existing and potential vertical overlaps, between the portfolio companies of TPG Global and API.

The market share of each portfolio company of TPG Global and API was in the range of 0-5% in each segment/ sub-segment in India. There were also several players present. Accordingly, CCI held that there was no ability or incentive to foreclose competition and the combination was approved.

[1] Combination Registration No. C-2020/11/788