Media reports are popping up, claiming that Tengzhong Heavy Industrial Machinery Company (Tengzhong), the sensational Chinese Hummer buyer, is contacting related Chinese state departments for the final approval.
Reports also say it won't be long before Hummer becomes Chinese. However, regarding the news, a spokesperson with China's Ministry of Industry and Information Technology (MIIT) claims the ministry hasn't received any submission from Tengzhong about the overseas purchase and suggests that derivations in the news circulation may have resulted in the rumor. "We will certainly pay attention to such issues as Hummer takeover", this person guarantees.
Earlier on June 16, Chinese Ministry of Commerce (MOC) claimed not to have received any application from Tengzhong but went on to point out that recent overseas purchases reflect Chinese enterprises' international scope irrespective of the world financial crisis, and will be simultaneously warned of the potential risks.
Meanwhile, all transnational acquisitions need approval from both MOC and National Reform and Development Commission – the country's top economy planner.
On June 3, world automobile giant General Motors (GM) made public in the US that Tengzhong would procure Hummer brand, and the transaction, involving as much as US$500 million, would be completed by the third quarter this year.
This information sparked instant dispute within the trade. Some foreign media even regards the acquisition as a joke, given that Tengzhong had been a relatively unknown company with little auto manufacturing background.
Reports show that Tengzhong has responded to the rumor and announces that the company is submitting required paperwork to the central authority through MOC's branch in Sichuan.
For more information, please consult the original coverage in Chinese at:
http://www.eeo.com.cn/industry/real_estate/2009/07/02/142438.shtml
(China.org.cn by Maverick Chen, July 3, 2009)
