GA-Renova & CCA in race to buy American oncology: Siemens Healthineers looking to exit non-core business for Rs 1,500 crore

Synopsis

Two prominent players are in the running to purchase American Oncology Institute from Siemens Healthineers. One of the potential buyers is General Atlantic in collaboration with Renova Hospitals, while the other contender is Raj Mantena's Cancer Centers of America. Siemens Healthineers initially acquired this cancer network as part of a larger strategic agreement. The completion of the sale is anticipated by mid-August.

A consortium of General Atlantic and Renova Hospitals, and Indian-American entrepreneur Raj Mantena's Cancer Centers of America (CCA) are the top two contenders to buy American Oncology Institute (AOI) from medical technology firm Siemens Healthineers, people familiar with the matter said.

Siemens Healthineers acquired the Hyderabad-based cancer-care network as part of its $16.4 billion purchase of US rival Varian Medical Systems in 2021. The German company controlled by industrial manufacturing and engineering conglomerate Siemens considers the hospital business as non-core and put AOI on sale with a price tag of ₹1,500 crore. The deal is likely to be finalised by mid-August, the people said.

ET first reported about Siemens Healthineers' plan to sell American Oncology Institute on May 14.

Sridhar Peddireddy, founder of the Renova Hospitals chain, confirmed being one of the bidders. "Almost 80% of the AOI's hospitals are in places where we don't have a presence. So, it's a strategic decision for us, where General Atlantic will remain our financial partner," Reddy told ET. Siemens Healthineers said it would not comment on speculation, while General Atlantic and CCA declined to comment.