Why did Tengzhong fail to purchase Hummer? (2)

10:05, March 03, 2010      

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Application never submitted

Yao Jian, spokesperson of China's Ministry of Commerce (MOFCOM), made it clear that there is no accurate information about the content, structure, or mode of the transaction between Tengzhong and GM. It is also not clear what Tengzhong really wants from the transaction, with choices such as brand, exterior design, or stock ownership, and whether Tengzhong plans to carry out a direct transaction, or set up a new company in the U.S. or other countries. Moreover, further information is needed to learn about the funds required for the transaction, follow-up investment, the company's business circumstance, and the succeeding developmental pattern. Therefore, the MOFCOM does not think it is the right time to move into the stage of receiving the application.

Yao pointed out February 25 that all relevant authorities have not yet received a complete application program from Tengzhong for acquiring GM's Hummer brand, and it is the company itself that decided to cancel the acquisition.

According to relevant rules, domestic regulatory authorities will start the examination and approval work only after receiving complete acquisition programs, which should have the investment model, financing method, and other contents included.

By People's Daily Online
【1】 【2】

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