Sichuan Tengzhong’s bid for General Motors’ Hummer brand is normal behaviour for a company seeking to take advantage of the global downturn to broaden its horizons, a Ministry of Commerce spokesman said on Monday.
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Media reports have said little-known Sichuan Tengzhong Heavy Industrial Machinery could struggle to win official approval to buy the SUV maker from bankrupt GM.
The Ministry of Commerce had not yet received any application related to the deal, spokesman Yao Jian told Reuters.
“Against the backdrop of the global financial crisis, it is rational and normal for Chinese companies to adopt an international outlook,” he said at a monthly news conference.
Sceptics have wondered whether Chengdu-based Tengzhong, which makes special-use vehicles and bridge and highway components, has the experience and resources to turn the Hummer business around but Yao said the government expected Chinese companies in general to encounter frustrations as they ventured abroad because they lacked managerial skills and track records in mergers and acquisitions.
“We hope Chinese companies can learn more about international rules and make prudent investments,” Yao said, according to the report.
