The Mint Report for 19 September 2011

The Mint Report for 19 September 2011

Fortis Healthcare India is all set to become the biggest company of its kind in Asia. On Monday it announced it would merge with Fortis Healthcare International, which is wholly owned by the brothers Malvinder and Shivinder Monhan Singh. Fortis International owns assets in Singapore, Australia and Hong Kong. Meanwhile Fortis Healthcare India has 62 hospitals across the country and the Singh family hold a majority stake in it.The new merged company will simply be called Fortis Healthcare and an independent agency will work out the valuation of Fortis International so the deal can be closed by December. Group chairman Malvinder Mohan Singh said the merger would create a large and integrated healthcare firm to serve the growing Asia-Pacific market. Singh also said he would become executive chairman under the new dispensation while his brother Shivinder would become executive vice chairman.

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India’s biggest company is in the crosshairs of the CBI. Mukesh Ambani’s Reliance Industries could see its operations in the lucrative K-G gas basin come under scrutiny. Mint has learnt the CBI is looking at registering one or more cases against the firm for alleged irregularities. The potential case will also name officials from the Petroleum ministry and hydrocarbons regulator DGH. The latest development comes soon after the CAG released a scathing report on RIL’s offshore gas operations. The CBI is looking into specific aspects of RIL’s activities. These include the lower penalty the company had to pay for not keeping its work commitments and letting it increase its capital expenditure for the D6 block in the KG basin.

Here’s a look at how the Indian markets fared. Local equities declined on Monday, breaking a three-day winning streak after getting spooked by the possibility of fresh increases in interest rates. The Sensex tumbled 188.48 points to 16745.35. And the Nifty fell 52.30 to 5031.95.