Tengzhong Buy Hummer "Stir Up Show": Failed Trading Is A Win-Win Outcome

In February 25th, a General Motors Corporation statement made the case of "buying a horse" in the Tengzhong, which was noisy for more than half a year.

The Tengzhong Hummer "series", which has hung everyone's appetite for nearly 9 months, has suddenly collapsed after a series of "magnificent" scenarios.

For both sides of the "tengma love" deal, this is a win-win deal without Losers: GM has demonstrated to the US government through the sale of Hummer brand and so on to the United States government as soon as possible to restore the declining trend and reinvigorate its past glory; Tengzhong has become famous through a takeover battle, and its behind the scenes controller Li Yan is taking the opportunity to run its listed company.

Behind a farce farce

According to the Securities Daily, Tengzhong is actually an enterprise that does not have the qualification of automobile production. A company that does not even have the qualification of production is also bold enough to take part in the acquisition of world-famous automobile enterprises, and to buy a foreign car brand that has already been in trouble and enter the high-end off-road vehicle industry. It is indeed incredible! Gan Weiwen, President of General Motors (China), has said that the biggest obstacle to Tengzhong's acquisition of Hummer is that Tengzhong does not have the qualification of automobile production.

The question of qualification has not been explained in Tengzhong throughout the performance.

Secondly, Tengzhong repeatedly "ambiguities" in the application process.

Tengzhong Heavy industry related personnel in the "performance" more than once "vindication", "the company is on the acquisition project to declare to the relevant departments", but the Ministry of Commerce has once again and again three, affirmed that it has not received Tengzhong materials, has not seen Sichuan private enterprises announced the purchase of Hummer declaration and application. According to legend, Tengzhong declared to the development and Reform Commission, Tengzhong reported in the takeover report, did not say in the production of Hummer domestically, did not say that the acquisition of Hummer's tangible assets and shares, only to buy Hummer brand.

NDRC believes that Tengzhong's acquisition of Hummer brand is neither a purchase nor an acquisition of shares. It belongs to the category of service trade. It does not belong to the national development and Reform Commission or is approved by the NDRC and submitted to the State Council for approval.

It is unthinkable that as a large enterprise, Tengzhong did not know that the approval of the Ministry of commerce is as important as the approval of the NDRC, and is it not clear about the "business scope" of the NDRC?

Tengzhong bought Hummer, the earth people know everything, is not an open trade secret, but apart from the air gap, it is cloud and mist.

Tengzhong said he would buy Hummer's assets and factories and invest billions of dollars to produce green Hummer domestically. Later, he said that the purchase of Hummer was strongly supported by the local government, and later came out only to buy Hummer brands instead of assets and shares.

Tengzhong's press spokesman has repeatedly said that the acquisition is awaiting approval from the regulatory authorities, so the NDRC has repeatedly declared that it has not yet received Tengzhong's report.

The connotation of "performance" is empty. The emptiness lies in the fact that the news that it should be disclosed is not public, whether the news is confirmed or not confirmed, and the public can only imagine the wings.

This is obviously a premeditated and crazy show. It is a black curtain of information. It is a "double spring" of "the intention of a drunk is not in wine".

In this crazy show, the winner is not only Sichuan Tengzhong, Tengzhong has gained the opportunity to enhance the international reputation. Hummer is an "oil tiger", which does not conform to the value orientation of low carbon economy. The end of Hummer will help to enhance the general concept of "health".

With the failure of the paction, GM announced that it would close Hummer brand, which was welcomed by environmentalists in the United States and GM had also achieved unexpected results.

Speculation is huge.

According to the daily economic news, GM's announcement on closing the Hummer brand deepened the suspicion that Tengzhong's acquisition of Hummer was a hype.

After receiving a statement from GM on ending the Hummer deal, the reporter called Yang Yi, general manager of Tengzhong Heavy Industries for the first time.

The performance of Yang Yi's interview with the media was quite different from that before. He refused the interview request: "please contact the public relations department for details, and there is no other details to disclose."

In Tengzhong Heavy Industries and GM's statement to the media, they expressed regret about the eventual failure of the paction.

According to people familiar with the matter, on October 23, 2009 ~10 25, Tengzhong Heavy industry executive team and Hummer top management team held the October summit in the conference room of six floor of Huatong investment in Chengdu. Detailed discussions on tengma love business plan, operation plan and board members were made, including delivery time, assembly plant, financing plan and Beijing auto show arrangement. In 2009 December 5th, Hummer (China) preparatory summit was held in Shanghai, and Hummer (China) team headed by Zhuo Qizhi, general manager of Huang Zhiqiang, Xue Zheng Feng, Zhou Jingzhe, Chao Lihong, Jiang Xing Yi and Hu Zhenqiang, was also established. According to

"Through the acquisition of Hummer, the first official access to the US market will be Chinese cars, while Hummer's technology management experience and market, Hummer extension products' legal rights in the United States are the value of Hummer brands," the insider told the daily economic news reporter. "This is the intention of Teng's acquisition of Hummer, so despite the difficulties, Tengzhong still does not give up the last hope, and the sincerity of Tengzhong acquisition is beyond doubt."

The spokesman further said, "it is irresponsible to say that Tengzhong buy Hummer is simply hype. The Hummer (China) office in BEA Building, Lujiazui, Shanghai, has been renovated, and both sides have paid a huge price and effort."

In February 26th, the "daily economic news" reporter came to the 22 floor of BEA Building, Lujiazui, Shanghai. The busy scene had ceased to exist. The office had been blocked by wooden planks, and through the cracks, the traces of unfinished interior decoration could be seen.

A front desk lady from another company on the 22 floor told reporters, "the company across the street has been decorating. Since December, I started to work."

Unfortunately, no matter whether the decoration can be completed, Hummer (China) office may never appear before people. If Hummer brand is going to the end, any related branch will be reorganized or disbanded, and there will be no way out.

Big winner Tengzhong:

Li Yan achieves three birds with one arrow

The voice that supports the whole acquisition is speculation that Tengzhong is the biggest beneficiary of the incident.

Through the magnifying effect of "tengma love", Li Yan has achieved a good play of "one arrow and three carvings".

After the failure of the paction, the capital market, which was originally not optimistic about the paction, gave a positive response.

On the morning of 25 February, the share price rose of the listed company of Tengzhong Heavy Industries, a listed company of Huatong, was more than 7%. As of the end of the day, the final increase was 1.4%.

"After the failure of Teng Zhong heavy industries to buy Hummer, the stock price of Siu Guang resources of its brother company did not rise, indicating that investors believe Hummer is a burden on Tengzhong Heavy Industries. Even if the takeover is successful, everyone is confident that it will not be able to run Hummer brand," Li You, assistant general manager of Tianfu futures, said in an interview with the daily economic news.

"Although efforts have been made for half a year, the paction has finally been aborted, but Tengzhong Heavy Industry and its parent company Huatong investment are all winners. The takeover events are beneficial to the promotion of Tengzhong brand awareness and the development of Huatong investment," said brand expert Rui Hong.

"Li Yan actively engaged in the acquisition of Hummer, not taking the success of the takeover as the ultimate goal," said the insider close to Tengzhong Heavy Industry, told the daily economic news reporter that Li Yan, who works hard and resolutely, has a unique commercial vision, likes to make friends, and always maintains a full working passion and intensity of work, so that he can eat a box lunch in five minutes.

This is reflected in the Teng ma love.

Despite the constant media questioning, Li Yan remains unmoved and continues to work hard to promote the acquisition process, while using the media to enhance the popularity of his company and skillfully carry out capital operation.

In June 16, 2009, Tengzhong Heavy Industries formally announced the acquisition of Hummer in less than half a month. The brothers of Tengzhong Heavy Industries, which were listed in Huatong investment company, were listed successfully in Hongkong. As of February 26, 2010, the closing price of Xu Guang resources was HK $2.28 and its market value was about 4 billion 500 million Hong Kong dollars. Another subsidiary of Huatong investment company, Hongkong Cato high polymer fiber Co., Ltd. (now renamed as China polymer new material Co., Ltd.) is actively conducting the listing of Korean stock through the leading underwriters Daewoo securities, the South Korea Ping Ping law firm, the auditor, the United States Ernst & young and other intermediary agencies, and now it owns 54.3% of the company's investment through Huatong investment.

"There are indications that the acquisition of Hummer may be just a means of commercial operation for Li Yan," the person familiar with the matter said.

General abacus:

Gestures in unusual times

"For general motors, the most important thing now is to let yourself live and sell things that are still valuable at home, and sell them to whoever is not the most important thing."

When General Motors announced that the Tengzhong Heavy Industry memorandum on sale of Hummer came out, an automotive industry expert said in an interview with reporters.

The development of tengma love shows that GM did not anticipate so many obstacles to the deal.

Apart from various queries from the media, Hummer's high oil consumption is contrary to China's energy conservation and emission reduction policies, and is considered to be a key factor in the final abortion.

In fact, GM chose Tengzhong Heavy Industries at the time. It was also a very unusual choice.

As Taylor Hummer CEO gold said, GM didn't need a car manager at that time. It only needed investors and huge Chinese market.

Although Tengzhong has no reputation, it is "almost the same as finding buyers in the capital market".

At that time, GM was facing bankruptcy protection. After several rounds of screening, GM signed a memorandum with Tengzhong before filing bankruptcy protection in June 1st.

"Because we need to reach a memorandum with a buyer before that," Kim Taylor said in an interview with the media.

More importantly, the declining brand of Hummer is contrary to the new general concept of development.

General manager Han Desheng said that the new GM that goes out of bankruptcy protection needs to produce consumer, popular, high quality, fuel economy products. The Hummer brand, which has excessive fuel consumption and declining sales, is no longer in line with the new general development idea.

Therefore, when the new GM launched the strategy of streamlining the brand, Hummer brand should be the first victim.

At the same time, GM also hopes to show a high profile to the US government. It hopes to actively sell Hummer, Saab and other brands through bankruptcy reorganization to restore the declining trend to the US government to renew its determination in the past.

Despite the eventual failure of the sale of Hummer, the recent US government's support policy for GM has shown that the positive attitude of GM has been recognized by the government.

Even if the Hummer brand finally dies, the US government holding 60% of GM will still support GM as soon as possible to get out of the haze of bankruptcy protection.

"Tengma love" to the end of the two sides have reached the situation of riding a tiger, until the last moment, we will not give up.

According to the person familiar with the matter, GM later endorsed the overseas takeover method proposed by Tengzhong, and the decision to terminate negotiations with Tengzhong is likely to be a new buyer.

The fate of Hummer:

General catch another straw

"GM will build the four core brands of Chevrolet, Buick, GMC and Cadillac, and Hummer brands will be closed in an orderly manner."

GM announced a "reprieve" for Hummer brand in its 25 day statement, but said it would continue to provide after-sales service support and spare parts supply for Hummer owners worldwide.

General (China) responsible person also told the daily economic news reporter that "GM will no longer accept any offer and offer for Hummer brand".

Up to now, GM has sold Hummer cars in more than 30 countries, and the Middle East market and the Chinese market are the two largest markets outside the United States.

Hummer sold only 213 million 710 thousand vehicles in 2009, down 45.7% from the same period last year, compared with the sales of over 80 thousand vehicles in 2006.

With the failure of Tengzhong trading and GM's plan to close Hummer brand, the prospect of Hummer brand will be worrisome.

It is understood that once the Hummer brand is closed, it is expected to cause 3000 unemployed workers to participate in Hummer design and manufacture, which will involve factories in Louisiana and Indiana, GM Hummer brand headquarters in Chicago headquarters, and Hummer dealers across the world.

However, yesterday's news made the future of Hummer seem to have changed.

According to overseas media reports, after failing to buy Hummer in Tengzhong, GM did not want to give up any opportunity to save Hummer. It has taken into consideration the purchase offer from multiple potential buyers to Hummer, and whether the Hummer brand can seize this last straw saved the attention of the media again.

It is reported that the new Hummer bidding partner should be a competitor from PK before the Tengzhong Heavy Industry's takeover of Hummer negotiations, and Tengzhong's withdrawal made them "comeback".

But mergers and acquisitions in the auto industry are complex and long. If the agreement can not be reached before GM closes the Hummer deadline, the demise of Hummer brands will become inevitable.

Although fuel economy is not enough, Hummer still plays an important role in military and other special fields.

In addition, taking into account the connotation of Hummer brand and the American culture it represents, the Hummer brand will disappear, which is regrettable, "Rui Hong said." I believe GM will not give up Hummer brand, and it should take positive measures to remedy it. "