Shanghai, June 15 (Gasgoo.com) Sichuan Tengzhong's bid for General Motors' Hummer brand is normal behavior for a Chinese company seeking to broaden its horizons by taking advantage of the global downturn, a Ministry of Commerce spokesman said today, Reuters reported.
According to most media reports so far, little-known Sichuan Tengzhong Heavy Industrial Machinery would face hurdles to win official approval to buy the Hummer, the maker of bankrupt GM's gas-guzzling sports utility vehicle.
Spokesman Yao Jian said the Ministry of Commerce had not yet received any application related to the deal. "Amid the global financial crisis, it is rational and normal for Chinese companies to adopt an international outlook," he told reporters at a monthly news conference.
Many people wonder whether Chengdu-based Tengzhong, which makes special-use vehicles and bridge and highway machinery, has the experience and resources to turn the Hummer business around.
However, the commerce official said the government expected Chinese companies to encounter setbacks as they ventured abroad as 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 added.
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