On August 26, 2020, CCI approved Lightstone Global Fund’s (‘Lightstone’) acquisition of: (i) 2.10% equity shareholding in Ascent Health and Wellness Solutions Private Limited (‘Ascent’); (ii) 10.44% equity shareholding in Lokprakash Vidhya Private Limited (‘Lokprakash’); (iii) 2.43% equity shareholding in Aahaan Commercials Private Limited (‘Aahan’); (iv) 0.01% equity shareholding in 91Streets Media Technologies Private Limited (‘91Streets’); and (v) 6.31% of the equity shareholding in API Holdings Private Limited (‘API’) (collectively, ‘Targets’). The acquisition was made pursuant to a scheme for the restructuring and consolidation of the businesses of Ascent, Aahaan, Lokprakash and API, filed before the National Company Law Tribunal.^[1]

Lightstone is a sub-fund of Lightstone Fund S.A., which is part of the LGT group of companies (‘LGT Group’). The LGT Group is a leading international private banking and asset management group controlled by the Liechtenstein Princely Family.

Ascent is incorporated in India and, along with its subsidiaries, is engaged in wholesale sale and distribution of pharmaceutical products, medical devices and over the counter FMCG and nutraceutical products (‘OTC drugs’). 91Streets provides: licensing of technology and intellectual property required to develop e-commerce platforms, wholesale sale and distribution of pharmaceutical products, medical devices, over the counter drugs, sale and distribution of diagnostic tools, provision of electronic medical records, and provision of logistics services. Aahaan and Lokprakash do not carry out any business activities and do not have any subsidiaries.

API has an indirect stake in Instinct Innovations Private Limited, which is engaged in the business of developing software and enterprise resource planning solutions for healthcare business as well as non-healthcare space, inter alia, and customized application services for the retail pharmacies on which sales can also be made.

CCI observed that horizontal overlaps existed between Lighthouse and the Targets, specifically in the broad segment of wholesale sale and distribution of drugs in India and in narrower segments in wholesale and distribution of: (i) pharmaceuticals; (ii) medical devices; and (iii) OTC drugs. The combined market shares of the parties were between 0-5% in all these segments/sub-segments, with an insignificant incremental market share. CCI left the delineation of the relevant market open as it observed that the combination was not likely to cause an AAEC in any of the possible alternative relevant markets.

Regarding vertical relationships, CCI observed that were various existing and potential vertical relationships between the LGT Lightstone India and the Targets. CCI observed that the combined market shares of the parties were between 0-5% and there were several players present in each segment. CCI was of the view that parties did not appear to have any ability or incentive to foreclose competition and accordingly approved the combination.

[1] Combination Registration No. C-2020/06/753