China’s commerce ministry has turned down Tengzhong’s initial application for the acquisition of Hummer from General Motors and ordered a detailed new one. The renewed application is meant to state the exact assets Tengzhong plans to get from Hummer, reported Shanghai Securities News today.
This report is in response to the previous rumor. It is said that GM Motor and China’s heavy machinery maker Tengzhong plans to announce the definitive assignment, which has already received the approval from the commerce ministry and related departments.
Reportedly, to avoid possible barriers, Tengzhong claimed that the acquirement would involve the Hummer brand only, excluding the intellectual property and facilities issues. Domestic manufacturing has not been mentioned either.
However, the commerce ministry thinks the brand includes the product and technologies. There’s no means to buy the brand only. The second application is ordered to give the intellectual property and technological details of the deal.