Afternoon Coffee: Takata Files for Bankruptcy, Canada Faces Marijuana Shortage

Japanese airbag maker Takata filed for bankruptcy protection Monday following the enormous recall of its defective product that killed at least 16 people, the Associated Press reported. Most of Takata’s assets will be bought by rival Key Safety Systems, a Chinese-owned company based in suburban Detroit, for about $1.6 billion.

Marijuana Shortage 

Canada is aiming to legalize recreational marijuana over the next 12 months, but the country is facing a hurdle beyond regulatory issues to reach that goal. As Bloomberg reported, demand for pot in Canada currently outstrips the available supply, with some concerned that the lack of product could ultimately push off the start date for the legalization program.

To readers of Spend Matters, that should come as no surprise. Our Managing Editor Taras Berezowsky recently called marijuana the riskiest legal supply chain in the world, one that enterprising procurement professionals are just determining how to manage and savvy technology providers are figuring out how to improve.

Nestle Targeted

Global food giant Nestle is in the sights of hedge fund Third Point, which in a letter to investors Sunday argued for dramatic changes at the company, according to the New York Times. Third Point owns about 40 million shares in Nestle, a stake that amounts to about $3.5 billion in stock, which makes it the company’s sixth-largest shareholder.

Crude Oil Imports

And finally, a commodities update: China's crude-oil imports rose to their second-highest level ever in May, MarketWatch reported, bellying the country’s efforts to fill its strategic petroleum reserves while crude prices remain low.

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