3 June 2009
 

Hummer

Tengzhong in advanced talks to purchase Hummer from GM

Autozine
3 June 2009 | Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd (Tengzhong) and General Motors Corp. today confirmed details of their proposed transaction, pursuant to which, Tengzhong, a major industrial machinery group, will acquire the rights to the off-road Hummer brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to Hummer's dealership network. It is contemplated that Tengzhong will, as part of the transaction, enter into a long-term contract assembly and key component and material supply agreement with GM. In an earlier statement, GM said it expects the deal if successful to secure more than 3,000 US jobs. The final terms of the deal are subject to final negotiations.
Info

Based in the Chinese province of Sichuan, Tengzhong is a privately-owned company and a domestic manufacturer of road, construction and energy industry equipment. It will expand into the off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for Hummer's growth in the U.S. and around the world.

Hummer

Hummer will continue to maintain its headquarters and operations in the U.S., and will continue to be managed by its existing leadership team. The team intends to expand Hummer's dealer network worldwide, particularly into new and underserved markets such as China.

The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.

Credit Suisse is acting as exclusive financial advisor and Shearman & Stearling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.

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