Srinagar: Fosun, a Chinese conglomerate and investment company, has pulled out of discussions for investment in two Indian healthcare companies, a Mumbai-headquartered dialysis services chain and a Bengaluru-based hospital.
According to a report by a Delhi based newspaper Economic Times, the move by Chinese conglomerate was taken after India tightened regulations for Chinese investments, according to executives aware of the matter.
Quoting sources, the report added that both deals were at an advanced stage, and Fosun had formally proposed terms for acquiring a stake in the companies, one of which is Apex Kidneycare. However, the name of the Bengaluru-based hospital could not be immediately ascertained.
The two planned investments were cumulatively worth over $300 million, ET quoted sources as saying. The sources added that Fosun is planning to scale down its investment activity in India amidst heightened anti-China sentiment.
It is being believed that the immediate trigger for pulling out of the proposed investments seems to be recent regulatory scrutiny by Indian authorities, sources said told the newspaper.
According to sources privy to internal deliberations at the company, the Shanghai-headquartered firm now intends to focus fresh investment activity on Southeast Asia and its objective in India will be to manage existing portfolio companies,
The sources told the newspaper that the company would go slow on fresh investments. However, a company spokesperson said it planned to continue to “cultivate” the Indian market.
“Fosun’s goal this year is focusing on core industries and strengthening regional operations, and achieving industry-leading positions in all of our core businesses,” the Fosun spokesperson was quoted by ET as saying.
“From a regional perspective, Fosun will continue to cultivate our existing regional markets as well as the emerging markets such as India,” the spokesman added.