Tengzhong loses Hummer

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    clpstaff &clp articles

    Offshore purchase unlikely

    Chinese equipment manufacturer Sichuan Tengzhong has failed in its bid to buy Hummer, General Motors' sports utility vehicle brand, and talk of using an offshore structure to avoid regulatory interference is flawed.

    On February 23, it was announced that Tengzhong had withdrawn its offer for Hummer. Although the reasons were not made public, and despite denials from Chinese government officials, many commentators speculate that the buyer was unable to secure the necessary regulatory approval. For outbound investments, Chinese companies must get the go-ahead from both the National Development and Reform Commission (NDRC) and the Ministry of Commerce (Mofcom).

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