The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MofCom) are squaring off over the regulatory approval needed for Sichuan Tengzhong Heavy Industrial Machinery to acquire the Hummer brand from General Motors, Reuters reported. The NDRC is opposed to the deal due to environmental concerns over the Hummer’s design and Tengzhong’s unclear plans for the brand. MofCom is seeking to approve the acquisition, calling it normal behavior for a company seeking to take advantage of an economic downturn. The Sichuan provincial government is also lobbying in favor of the deal. Should Tengzhong gain the approval of MofCom but not the NDRC, the company would be able to proceed with the deal, but would be unable to move any manufacturing facilities to China. The deal is expected to be completed at the end of the third quarter.
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