Reckitt Benckiser acquiring Chinese medicine firm

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

Insiders believe that theacquisition will help ReckittBenckiser to diversify  itsbusiness and to sell westernhealth products in China.

As  for  the  futuredevelopment  of  sore-throatremedy  "Man  Yan  ShuNing",  GolongMedicine'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 havetold media that the company plans to expandits Chinese base through acquisition, jointventure and factory construction, and to reach10 billion yuan of sales in the Chinese marketwith the introduction of the company's 19brands in over 600 cities by 2012.

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