Best of the Blogs, Emerging Markets: China's Poisonous Drugs
By Kathleen Culliton Apr 23, 2012 5:20 pm
Minyanville's daily roundup of some of the best financial commentary on emerging markets from around the Web.
This column highlights the most interesting and useful business and financial commentary on emerging markets from around the Web every Monday.
Wall Street Journal: China Real Time Report
"Chinese officials have arrested nine people and detained 45 others allegedly tied to a recent product safety scare involving poisonous drug capsules that has shaken the country's pharmaceutical industry. In addition to the arrests and detentions, officials have also shut down 80 illegal lines of production and seized 77 million drug capsules that had been made with hazardous industrial gelatin, the Ministry of Public Security said in a statement Sunday. China's drug regulators announced last week the suspension of sales of 13 drugs, 11 Chinese traditional medicines and two antibiotics, after finding they were encased in gelatin capsules that contained excessive levels of chromium According to China's state broadcaster, CCTV, the toxic drug capsules, believed to originate from factories in China's coastal Zhejiang province, had been made using scraps of leftover leather." (Also read China: Starbucks, China Mobile, and Sina Weibo Are in the News.)
Financial Times: Beyond Brics
"Reports of a reconciliation – or even a business deal – between the Ambani brothers may have been premature. It was only six months ago that reports circulated that Indian billionaire Mukesh Ambani might lease [the] telecom's tower space from the struggling company owned by his estranged younger brother, Anil. The news was greeted as evidence that tensions were cooling between India's most powerful siblings. But perhaps not. The Economic Times reported on Monday that Mukesh Ambani's Infotel Broadband Services – through which he plans to launch a 4G data network – plans to spend $8bn – $9bn on the launch, including the construction of over 100,000 carbon fibre towers in the next three years, which would scrap the need for any deal with Anil's Reliance Communications." (Also read India's Warren Buffett.)
Wall Street Journal: Deal Journal Australia
"In a bid to capture Asia's fast-growing sports apparel market, Japan's Itochu Corporation has stepped up to the plate. Itochu has acquired mutually exclusive supply and distribution rights for compression sportswear group Skins in Japan, China, South Korea, Taiwan, Hong Kong and Macau. The Japanese group's entry into Skins has allowed Sydney-based private equity firm Equity Partners to sell its 36% stake for more than US$30 million, for an internal rate of return of 24% per annum based on an investment life of 4.3 years. 'Since we bought Skins in December 2007, revenue grew to US$50 million from US$16 million and it came time to search for a strategic partner to help the company achieve its global growth ambitions,' Equity Partners' partner Rajeev Dhawan told Deal Journal Australia."
New York Times: IHT Rendezvous
"The first public confrontation between the democrats led by Daw Aung San Suu Kyi and the Myanmar government began to play out on Monday as newly elected members of Parliament refused to take the official oath of office. The new lawmakers want to tweak the wording of the oath, but the nominally civilian government has refused to blink, which suggests that more conservative elements in the country could be putting the reformist tendencies of President Thein Sein in jeopardy. The democrats, after having created the standoff, played down its severity on Monday, saying they expect some sort of resolution soon. But the issue might well give pause to Britain, the United States and other "first responders" that have already begun relaxing their political and economic sanctions against the former Burma. Japan, for example, agreed last weekend to forgive $3.7 billion in overdue loans while holding out the possibility of new assistance."
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