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| Tengzhong seeks govt approval for Hummer deal |
| AFP/PTI / Beijing Oct 12, 2009, 17:25 IST |
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Chinese heavy machinery maker Tengzhong said today it expected to get regulatory approval for its acquisition of the iconic Hummer brand from General Motors this year or early next.
Tengzhong has started talks with government agencies after signing a "definitive agreement" last week with US giant GM to buy the sport-utility vehicle brand, a spokeswoman for the Chinese company told AFP.
The transaction is expected to be finalised in late 2009 or early 2010, she said, "which is the point that we also expect to have received the necessary review or approvals to close the transaction".
Privately owned Tengzhong and GM announced Friday that the Chinese company would purchase Hummer through an investment entity, in which Tengzhong will hold an 80 per cent stake.
Chinese entrepreneur Suolang Duoji, whose holdings include the Hong Kong-listed industrial chemical producer Lumena, will hold the remaining 20 per cent stake.
Financial terms of the agreement, which is subject to regulatory approval by both the US and Chinese governments, were not disclosed.
GM and Tengzhong in early June signed a tentative agreement for the Chinese firm to buy the Hummer nameplate, whose gas-guzzling vehicles have lost favour with US buyers.
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