China’s commerce ministry has not yet received an application from heavy machinery maker Tengzhong for the acquisition of the Hummer brand from General Motors, media reported today, citing an official.
“The Ministry of Commerce has not received any formal application from Tengzhong,” the ministry’s spokesman Yao Jian told reporters at a news conference. “We know no details about Tengzhong’s overseas purchase agreement,” he said in response to a question about the Hummer deal.
Sichuan Tengzhong Heavy Industrial Machinery last Friday signed a “definitive agreement” with GM to buy the US auto giant’s iconic SUV brand Hummer, although the deal still faces a number of hurdles including required regulatory approvals.
Earlier this week Tengzhong said that it was talking with regulators about the Hummer business and that the deal could be closed in late 2009 or early 2010, but no specific timetable was given for submitting an application to the Chinese government.
Yao said the commerce ministry had “no precise knowledge” on whether Tengzhong planned to buy the Hummer brand and external design or take an equity stake in the gas guzzler. The ministry also did not know the value of the transaction, he added.
However, he said the government supported domestic companies investing abroad to expand their market and take advantage of the financial crisis.
Source: Gasgoo – By George Gao