Aster DM Healthcare (NSE:ASTERDM, BOM:540975) has received approval from the Competition Commission of India for its proposed merger with Quality Care India, according to a Wednesday filing to the Indian stock exchanges.

The transaction also includes Quality Care India's private equity investors and shareholders- BCP Asia II TopCo IV and Centella Mauritius Holdings.

Before the merger, Aster will purchase a 5% stake in Quality Care India from BCP Asia and Mauritius Holdings. This transaction will be in consideration of a primary share issuance by Aster, the competition watchdog said in a separate statement.

On completion of the merger, investors including BCP Asia, Mauritius Holdings and some minority stakeholders, will hold a certain stake in the merged entity. However, Mauritius Holdings will have a less than 10% stake without control rights in Aster DM Quality Care.

The company's shares were up 2% in recent trade.