2009-06-07

China May Not Approve Hummer Purchase

A Sichuan company's bid to buy up a famous brand name may hit the little snag of reality, as Chinese officials don't see the wisdom in buying the gas guzzling brand when the country is pushing for industry consolidation and electrification.
However, any such deal would require Chinese Commerce Ministry approval at the provincial level at least.

Reports in the Shanghai Securities News and other state-run newspapers Friday said Sichuan Tengzhong had not yet obtained such an approval. They also raised questions over whether the deal will be allowed to go through, with one report likening Tengzhong's plan to acquire Hummer to a "snake trying to swallow an elephant."

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