Hummer deal faces Beijing hurdle
A Chinese company’s attempt to acquire General Motors’ Hummer brand is facing rejection by Beijing, throwing the landmark deal into disarray and further undermining the prospects of cross-border deals involving mainland companies.
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Source: Hummer deal faces Beijing hurdle
Quote from the article:
According to people familiar with the matter, Sichuan Tengzhong Heavy Industrial Machinery is making a last-ditch attempt to secure regulatory approval from China’s commerce ministry for its deal to buy Hummer. GM and the Sichuan Tengzhong, a previously little-known provincial machinery company, had set a deadline of this week to conclude the $160m acquisition. The sides had already extended that deadline by a month due to problems gaining regulatory approval. “The chances of this deal happening are getting worse by the day, and there is no clarity surrounding the approvals process,” said one person familiar with the matter. “Who knows what will happen next?” Sichuan Tengzhong is clinging to hopes that it could buy the Hummer brand in a refashioned deal, possibly using an offshore acquisition vehicle, although this could take months to arrange. |
Source: Hummer deal faces Beijing hurdle
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