It was reported last week that China’s National Development and Reform Commission (NDRC) is likely to reject Sichuan Tengzhong”s bid to buy Hummer since it feels that the Chinese company may not have enough experience and resources to run the SUV business.
General Motors said today that it will now begin talking with regulators this week in a move to get government approval for Tengzhong to buy Hummer by the end of September.
“We will start discussions with the Chinese government this week on the Hummer deal,” Micahel Albano, a spokesman with GM’s Asia Pacific operations said. “We can’t sign the deal unless we have approval from the government.”
The unusual step of GM engaging regulators so early in the process has raised a lot of skepticism surrounding the Tengzhong/Hummer deal.
– By: Mo Eladawy