Fosun International to acquire Medall Healthcare

China's Fosun International group is in talks to buy Chennai-based diagnostics and radiology labs chain Medall Healthcare after a deal between Nasdaq listed Constellation Alpha and the PE-investor-owned healthcare company fell through in December because of failure to meet certain deal conditions. The $100-billion Chinese family-owned conglomerate is holding negotiations with Medall's investors, New York-based private equity fund Siguler Guff and homegrown Peepul Capital. Fosun has completed due diligence on the company, according to two people familiar with the matter. Medall was founded by serial entrepreneur Raju Venkatraman and is a dominant player in the South Indian market with nearly 185 labs. Unlike other pathology chains that offer only blood-based sample testing, Medall derives a substantial portion of its revenues from radiology services such as scans and MRI's. Fosun has been expanding its investment portfolio in India. The group had bought Gland Pharma from KKR in a $1billion-plus deal in 2017. It is also an investor in online logistics company Delhi very through its VC investment arm and had also submitted a bid for Fortis Healthcare which was eventually acquired by Malaysia's IHH. Fosun operates hospitals in China and is estimated to own nearly 40 per cent of Portugal's banking and financial services industry through its holding in some of the large banks and insurance companies there.