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Commerce Ministry: Tengzhong bid makes good sense
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The Mofcom spokesman also said the Tengzhong bid for Hummer makes good sense. But the ministry hasn't yet received any application papers for the deal.

The spokesman said Sichuan Tengzhong's bid for the GM Hummer brand is normal behavior for a company seeking to take advantage of the global downturn and broaden its horizons. But a deal of such size requires an application to the Ministry of Commerce.

Yao Jian, Spokesman of Ministry of Commerce said "I heard from my colleagues at the Ministry of Commerce that they haven't received any applications yet. According to our overseas investment management rules, projects involving more than 100 million US dollars should apply to the Ministry of Commerce. Projects under that value can apply to the local commerce department."

Tengzhong has reached a memorandum of understanding with GM to buy the troubled US automaker's Hummer division on June 3rd. They will enter into a long-term contract assembly, key component and material supply agreement. The deal ensures more than three thousand employees in the US will keep their jobs.

(CCTV June 16, 2009)

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