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Tengzhong "respects" failure of Hummer acquisition

Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. announced Thursday morning that the company failed to get the approval from Chinese regulators before the proposed timeframe, and has withdrawn its acquisition bid after negotiation with General Motors.

Tengzhong "respects" this result, but also regrets that the transaction could not be carried out.

"We have made great efforts for this acquisition, because we believe that the deal will provide a rare chance to get a global brand at an attractive price," said Tengzhong.

Under the initial agreement to sell Hummer, Tengzhong would have received an 80 percent stake, while Hong Kong investor Suolang Duoji, who indirectly owns a big stake in Tengzhong, would have gotten 20 percent.

As a result, GM said it would begin the orderly wind-down of its Hummer operations, which employs in excess of 3,000 people in the U.S. John Smith, GM's vice-president of corporate planning, said he was "disappointed" with the outcome, and that GM has already considered a number of alternative possibilities.

Yesterday, China's Assistant Minister of Commerce Wang Chao reiterated that they have not received an application in regard to the purchase of Hummer.

By People's Daily Online

中文文本

未获监管层通过 腾中重工表示遗憾

2月25日早间消息,新浪财经自腾中重工相关负责人处获悉,由于在双方商定的期限内未能获得中国相关监管机构对悍马交易的批准,四川腾中重工(腾中)经与通用磋商,今日宣布停止推进交易的相关行动,并终止签署的最终协议。

腾中方面表示,自己尊重这一结果,但对无法完成这次交易感到非常遗憾。

“公司对这一收购倾注了巨大的心力,因为腾中相信此次交易会为公司提供一个难得的机会以具吸引力的价格收购一个全球性品牌。同时,透过腾中及其它投资者的投资注入亦可为悍马的现有管理团队提供资源来推出环保型的运动车,从而满足现有主要市场的需要,并吸引包括中国在内的新兴市场。”腾中方面表示。