Chinese government okays Sumitomo investment

After 16 months of wrangling, Japanese investor secures 20% in Henan Topfond Pharmaceutical.

By Dan Slater

March 13, 2006

Sumitomo, one of JapanÆs largest trading corporations, announced yesterday March 13 that it has completed the acquisition of a strategic interest in a profitable Chinese drug-maker. The deal will enable Sumitomo, which also recently acquired a Japanese drug maker, to expand its presence in China, and to source Henan TopfondÆs range of generic drugs for sales abroad.

The deal represents the first such strategic stake in a Chinese company by Sumitomo, which has previously been restricted to joint ventures. Although the consideration was reportedly less than $25 million no sales price has been announced, the deal has been dogged by lengthy delays. These were due to a mixture of nationalistic and technical reasons, say...

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