Tengzhong fails to win approval for Hummer bid

Sichuan Tengzhong Heavy Industrial Machinery Co has withdrawn its proposed acquisition of General Motors’ Hummer unit after the deal failed to meet with approval from domestic regulators, the Wall Street Journal reported. Tengzhong had hoped to buy Hummer for US$150 million, but its application to Chinese authorities appears to have stalled within the government bureaucracy. Tengzhong had applied for approval to the Sichuan provincial government, but officials in the Commerce Ministry and the National Development and Reform Commission – whose approval was required for the deal to succeed – said they had not received applications. While Tengzhong said earlier this week that it would seek ways around a possible government rejection of its deal, it is likely that the company may end its plans. "Tengzhong is disappointed that the transaction cannot be further pursued, but the company respects the outcome," the company said in a statement received by China Economic Review. GM said that it would wind down Hummer operations after the failure of the deal.