9.2Tengzhong's Hummer deal to be commercially judged

Tengzhong's Hummer deal to be commercially judged

 

http://autonews.gasgoo.com/auto-news/1012000/Tengzhong-s-Hummer-deal-to-be-c
ommercially-judged.html

 

Shanghai, September 2 (Gasgoo.com) Chinese regulators could decide whether
to approve Tengzhong's bid for General Motors' Hummer brand based on
commercial, not political, factors, a think-tanker with one of the
regulators said at the China Investment Summit on Aug. 31, Reuters reported.

 

Since early June when Chinese machinery maker Sichuan Tengzhong announced
its plan to buy the Hummer brand, Tengzhong and GM have been pushing ahead
with the deal, which must be approved by two key regulators -- the Ministry
of Commerce, and the National Development and Reform Commission (NDRC),
China's top economic planner.

 

Market share and technology should have been the two key considerations for
Tengzhong when it put forth its proposal for Hummer, said Chen Dongqi,
deputy director of the Academy of Macro-Economic Research under the NDRC.
"My personal view is Tengzhong must study if Hummer is worth it," Chen said
at the summit at the Reuters office in Beijing.

 

Chen said that in determining whether to approve acquisitions in general,
the NDRC should consider factors involving both market benefits and national
security. The NDRC was reportedly lukewarm on the deal shortly after it was
announced, but may have adopted a more neutral stance since then.

 

Tengzhong, responding to reports last week that Chinese regulators had
approved its bid, said it is still awaiting official word. The NDRC
reportedly said it had yet to approve the deal. The commerce ministry is
positive about Chinese companies "going global" by acquiring world-famous
brands.

 

A source familiar with the deal said last week that the two sides could
finalize terms of the Hummer acquisition this week. Some of the terms have
been leaked online, such as Tengzhong will operate Hummer's business via an
offshore company.

 

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