Reuters reports that the two Chinese regulators who have say on Sichuan Tengzhong's proposed acquisition of GM's Hummer may be leaning to opposite positions. Excerpt:
The National Development and Reform Commission (NDRC), China's top economic planner, generally opposes a deal that captured global headlines last month, due partly to environmental concerns around the gas-guzzling Hummer and the vague plans that suitor Sichuan Tengzhong Heavy Industrial Machinery has for the brand, a politically connected source said.
But the influential Ministry of Commerce (Mofcom) seems more supportive of Tengzhong, the Chinese machinery maker that launched its surprise bid for Hummer last month, the source said, adding a decision could come as early as the end of this month.
The divergent paths are unusual for Beijing, where regulators often speak with a single voice that comes from the top. Failure to reach consensus could delay a deal or even see it rejected.
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