Tengzhong 'respects' failure of Hummer acquisition
2010-02-25 09:07:05Source:People′s Daily OnlineAuthor:
Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. announced Thursday morning that the company failed to get the approval from Chinese regulators before the proposed timeframe, and has withdrawn its acquisition bid after negotiation with General Motors.
Tengzhong "respects" this result, but also regrets that the transaction could not be carried out.
"We have made great efforts for this acquisition, because we believe that the deal will provide a rare chance to get a global brand at an attractive price," said Tengzhong.
Under the initial agreement to sell Hummer, Tengzhong would have received an 80 percent stake, while Hong Kong investor Suolang Duoji, who indirectly owns a big stake in Tengzhong, would have gotten 20 percent.
As a result, GM said it would begin the orderly wind-down of its Hummer operations, which employs in excess of 3,000 people in the U.S. John Smith, GM's vice-president of corporate planning, said he was "disappointed" with the outcome, and that GM has already considered a number of alternative possibilities.
Yesterday, China's Assistant Minister of Commerce Wang Chao reiterated that they have not received an application in regard to the purchase of Hummer.
Tengzhong "respects" this result, but also regrets that the transaction could not be carried out.
"We have made great efforts for this acquisition, because we believe that the deal will provide a rare chance to get a global brand at an attractive price," said Tengzhong.
Under the initial agreement to sell Hummer, Tengzhong would have received an 80 percent stake, while Hong Kong investor Suolang Duoji, who indirectly owns a big stake in Tengzhong, would have gotten 20 percent.
As a result, GM said it would begin the orderly wind-down of its Hummer operations, which employs in excess of 3,000 people in the U.S. John Smith, GM's vice-president of corporate planning, said he was "disappointed" with the outcome, and that GM has already considered a number of alternative possibilities.
Yesterday, China's Assistant Minister of Commerce Wang Chao reiterated that they have not received an application in regard to the purchase of Hummer.
