8.17Tengzhong says to close Hummer deal in Sept

Tengzhong says to close Hummer deal in Sept

 

http://autonews.gasgoo.com/auto-news/1011791/Tengzhong-says-to-close-Hummer-
deal-in-Sept.html

 

Shanghai, August 17 (Gasgoo.com) Chinese heavy machinery manufacturer
Sichuan Tengzhong recently said that it will close its deal with General
Motors to buy GM's Hummer brand at the end of next month, adding that their
substantive talks are going well, China Business News reported today, citing
an executive of Tengzhong.

 

According to the source from Sichuan Tengzhong Heavy Industrial Machinery
Corp., the company only signed a tentative agreement with GM on June 2 about
the Hummer deal, and since then the two parties have been talking about many
substantive details, some of which have to be discussed and finalized one by
one, especially the price.

 

Tengzhong said that it is ready to submit its Hummer deal application to
China's regulating bodies, saying both the Ministry of Commerce (MoC) and
the National Development and Reform Commission (NDRC) are supportive of
Chinese companies venturing abroad. Additional documents needed for the
application will be submitted soon as well.

 

Things are going according to plan, the executive said, although every move
of the company has been closely watched and reported by the media. After the
ongoing talks finalize the remaining issues, regulatory approval will follow
immediately. The Hummer deal between Tengzhong and GM will be closed at the
end of September as scheduled, he said.

 

Given concerns over the gas-guzzling Hummer's environmental issue and
Tengzhong's management capability, the critical thing now for Tengzhong to
do is to present a plan on how to produce more fuel-efficient Hummers and
keep a long-term sound investment following the acquisition.

 

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