Reckitt Benckiser Acquiring Chinese Medicine Firm

Continuing its expansion in China, UK-based Reckitt Benckiser is reportedly acquiring Golong Medicine, a traditional Chinese medicine manufacturer known for sore-throat remedies. The exact figure of acquisition has not been disclosed yet.

Insiders believe that the acquisition will help Reckitt Benckiser to diversify its business and to sell western health products in China.

As for the future development of sore-throat remedy “Man Yan ShuNing”, Golong Medicine’s top product, which is only sold in China at present, it was reported by National Business Daily that the company would probably continue to market the product, but no plan to sell traditional Chinese medicine outside of China, according to Rakesh Kapoor, CEO of Reckitt Benckiser

Reckitt Benckiser representatives have told media that the company plans to expand its Chinese base through acquisition, joint-venture and factory construction, and to reach 10 billion yuan of sales in the Chinese market with the introduction of company’s 19 brands in over 600 cities by 2012.

Last year, Reckitt Benckiser settled in its North Asia headquarters in Beijing and invested 500 million yuan to expand business in the Chinese market.