The Thinking Behind Tengzhong's Failure to Purchase Hummer

General Motors (GM) announced on Feb. 25 that because Sichuan Tengzhong Heavy Machinery Company (Tengzhong) did not complete the purchase of Hummer on schedule, the acquisition has failed.

On the same day, Tenghzong also announced that because it failed to acquire approval of China's relevant supervision authorities within the time limit, it will stop all relevant work of the acquisition and terminate the "final agreement" they had signed.

However, the Ministry of Commerce spokesman YAO Jian told reporter that it had never received any formal application from Tengzhong; therefore, the termination is due to the companies' own decision, rather than rejection form supervision authorities.

Two completely different explanations made the widely questioned acquisition more complicated and confused.

Article in Chinese: http://magazine.bocvip.com/2010-02-28/110386561.html