OCTOBERASIA BUSINESS OUTLOOK8The acquisition of Eu Yan Sang International by Mitsui & Co, in partnership with Rohto Pharmaceutical Co, marks a significant move in the traditional Chinese medicines (TCM) industry. The deal, valued at $800 million ($594 million), reflects Mitsui's and Rohto's strategic vision for expanding their presence in the TCM market.A special purpose company jointly owned by Mitsui and Rohto will acquire approximately 86 percent of Eu Yan Sang from Righteous Crane Holding, a holding company owned by a fund managed by Tower Capital Asia, a unit of Temasek Holdings, and founding family members of Eu Yan Sang. Following the acquisition, a takeover bid will be made for the remaining 14 percent of Eu Yan Sang.Founded in 1879, Eu Yan Sang operates a significant network of retail outlets and clinics across Singapore, Hong Kong, and Malaysia. The company's long history and strong presence in the TCM sector make it an attractive investment opportunity for Mitsui and Rohto.Mitsui's previous indirect investment in Eu Yan Sang in November 2022, along with its efforts to support the company's brand enhancement and overseas expansion, reaffirmed the strong business potential of Eu Yan Sang. This led to Mitsui's decision to reinvest in the company alongside Rohto and the founding family.The transaction is expected to close by June, indicating a swift progression towards the finalization of the deal. Financial advisers Deutsche Bank and UBS, along with legal counsel WongPartnership, are facilitating the acquisition process for Eu Yan Sang.Overall, the acquisition underscores Mitsui's and Rohto's commitment to investing in the TCM sector and leveraging Eu Yan Sang's established platform to further expand their presence in the market. NEWSROOMMITSUI BUYS OUT EU SANG INTERNATIONAL AT $594 MILLIONThe Philippines experienced a second consecutive month of accelerating annual inflation in March, largely driven by a sharp increase in the price of rice, a staple food in the country. The consumer price index rose by 3.7 percent year-on-year, up from 3.4 percent in the previous month. This uptick in inflation aligns with economists' forecasts, which had anticipated a rate of 3.8 percent for March, falling within the central bank's projected range of 3.4 percent to 4.2 percent.The Bangko Sentral ng Pilipinas (BSP) noted that the risks to the inflation outlook remain skewed to the upside, indicating a potential for further price increases. The Monetary Board is set to review its policy settings in light of these developments.Of particular concern is the significant increase in food inflation, which reached 5.7 percent, the highest since November 2023. Within this category, the price of rice surged by 24.4 percent in March, marking its most substantial increase since February 2009 and accounting for nearly half of the overall inflation rate for the month.However, core inflation, which excludes volatile food and energy prices, eased slightly to 3.4 percent in March, down from 3.6 percent in February. While this figure was slightly lower than expected, economists remain cautious due to persistent concerns about rising food prices.Given the ongoing challenges posed by food inflation, analysts anticipate that the BSP will maintain its benchmark interest rate at 6.50 percent during its upcoming meeting. This decision reflects the central bank's efforts to balance economic stability with the need to address inflationary pressures. PHILIPPINES ON AN INFLATION STREAK, CPI RISES BY 3.7 PERCENT
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