|Headquarters||Chengdu, Sichuan,, China|
|Products||trucks, construction machinery|
Sichuan Tengzhong Heavy Industrial Machinery Company Ltd is based in Chengdu, Sichuan, China. Sichuan Tengzhong is a privately owned company known for making a wide range of road equipment, such as bridge piers, highway construction and maintenance machinery. Sichuan Tengzhong has been moving more into heavy-duty trucks, including tow trucks and oil tankers.
On June 1, 2009, as a part of General Motors Chapter 11 reorganization announcement, GM revealed that Hummer brand would be discontinued. However, the following day GM announced that instead it had reached a deal to sell the brand to an undisclosed buyer. On June 2, 2009 GM announced the sale of Hummer to a non-disclosed Chinese company. The New York Times reported Tuesday that the buyer would be the Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a machinery company in western China. Late Tuesday Sichuan Tengzhong itself posted it on their own website. The transaction is expected to close in the third quarter of 2009 and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement were not disclosed. Credit Suisse is acting as exclusive financial advisor and Shearman&Sterling is acting as international legal counsel to Tengzhong on this transaction. Citi is acting as financial advisor to GM.
On June 26, 2009 Chinese state radio announced that the bid by Sichuan Tengzhong to buy Hummer would be blocked on environmental grounds and that the National Development and Reform Commission would also block the bid as Sichuan Tengzhong "lacks expertise in car production". Tengzhong was expected to keep HUMMER a U.S.-based company. Though an exact location had not been selected, HUMMER global headquarters would have been in the United States. Under the terms of the agreement, Tengzhong would have initially contracted production and major components to General Motors.
General Motors announced on October 09, 2009 that they have sold their entire stake in the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery and a group of private investors (Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, will hold the remaining 20 percent stake.). Sichuan now owns 80% of the company, Autoblog reports. The sale will net GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies, which could come later this year or in early 2010.
The deal includes manufacturing to continue in the two plants that GM already uses to produce the Hummer trucks through June of 2011, with a possible extension until 2012.
Prior to the 2009 sale a handful of other Chinese automakers, including Changfeng, expressed interest in the brand, but all declined to make a formal offer.
It has been reported that the deal had fallen through by late 2009.[citation (source) needed]
General Motors was trying to also sell the Vauxhall Motors and SAAB Cars divisions to Magna Group of Canada in 2009, but was unable to conclude a deal.
- http://news.bbc.co.uk/1/hi/business/8120231.stm China 'to block' Hummer takeover
- Sichuan Tengzhong (Official statement)
- China's Changfeng had talks on GM's Hummer: source reuters.com, Mon Aug 18, 2008 4:19am EDT
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