Tengzhong still awaits approval on Hummer deal
Mon Aug 24, 2009
BEIJING - China's Tengzhong, responding to reports that Chinese regulators had approved its bid for General Motors's Hummer brand, said on Monday it is still awaiting official word.
Represenatatives from the Commerce Ministry and National Reform Development Council, which are both reviewing the agreement, told the official Xinhua News Agency that the deal had yet to receive approval from their agencies.
The Chinese-language newspaper National Business Daily reported during the weekend that China's Ministry of Commerce had approved Sichuan Tengzhong Heavy Industrial Machinery's plan last Friday. (here)
"We don't see any reason to reject the deal," the paper quoted an unnamed ministry official as saying.
"Tengzhong says it only wants to buy Hummer's brand, while issues like intellectual property and new plants are not involved," said the official.
Officials at the Ministry of Commerce and National Reform Development Council, the country's top economic planning agency, were not immediately available for comment.
A Tengzhong spokeswoman declined to comment on the report, saying she was not sure whether the ministry had held such a meeting last week.
"Negotiations continue to progress and the transaction will be announced upon the signing of the definitive agreement as soon as appropriate," the spokeswoman said.
No further specifics regarding the transaction will be provided until the agreement is finalized, she added.
Tengzhong, a little-known Chinese machinery maker, surprised investors and industry executives alike when it unveiled a tentative plan in June to take over Hummer from General Motors GM.UL.
Doubts about Tengzhong's lack of experience in the car industry and the gas-guzzling nature of the U.S. SUV have been cited by state media as reasons for regulators to oppose the deal.
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