Nov 29 (Reuters) - India's Aster DM Healthcare

will merge with Blackstone-backed hospitals operator Quality

Care India, the companies said on Friday, bringing Aster closer

to its larger rivals Apollo Hospitals and Manipal Hospitals.

This is Aster's first major deal since selling its Gulf

business. The company will get access to Quality's 5,500 beds,

taking the merged entity's total bed count to more than 10,000.

The acquisition will bring Aster's domestic capacity close

to that of market leader Apollo Hospitals and the

privately-held Manipal Hospitals, making it one of the top three

hospital chains in the country.

The merged entity, which will be called Aster DM Quality

Care, plans to add another 3,500 beds by fiscal year 2027,

funded through internal accruals. Earlier this year, Aster laid

out plans to spend up to $108 million to boost its domestic

capacity across the 19 hospitals it runs in India.

The combined entity will be jointly controlled by Aster's

top shareholders and Blackstone, with respective holdings of 24%

and 30.7%. The company did not specify the size of the deal.

Post the merger, Aster's shareholders will hold a 57.3%

stake in the combined firm, with Quality Care - which operates

CARE Hospitals, KIMS Health and Evercare hospital chains in

India - owning the rest.

Azad Moopen, Aster's founder and managing director, will

continue in his role and oversee the merged entity, while Varun

Khanna, MD of Quality Care, will helm the merged entity as the

CEO, the two companies said.