Tengzhong may take offshore route for Hummer deal

Sichuan Tengzhong Heavy Industrial Machinery Co said it was considering a number of options, including the use of an offshore investment vehicle, to secure a purchase of General Motors’ Hummer unit if the deal did not meet with regulatory approval, the Wall Street Journal reported. A GM spokesman said GM and Tengzhong "are still working together" on the deal. However, Beijing is thought to object to the purchase due to questions about Tengzhong’s ability to manage a global auto brand, and Hummer’s reputation as a producer of gas-guzzling cars, in contrast with China’s focus on promoting fuel efficiency within its auto industry. A lack of regulator approval led GM and Tengzhong to extend a January 31 deadline on a definitive agreement to February 28. It is unclear how the use of an offshore investment vehicle would allow Tengzhong to sidestep opposition from Beijing.