Tengzhong manager says Hummer deal to be closed in Q3

Shanghai, June 15 (Gasgoo.com) Sichuan Tengzhong Heavy Industrial Machinery Co said on Sunday that it has submitted plans to buy General Motors Corp's Hummer to Chinese government regulators and if approved, the deal will be inked by the third quarter of this year, Shanghai Securities Journal reported Monday.

"It's up to the government decide whether the transaction is feasible," Yang Yi, general manager of the company told reporters in Beijing on Sunday. "We think a deal should be completed in the next quarter if we won approvals."

Yang said Tengzhong is aware of the challenges facing the acquisition and is well prepared for losses, if there's any, caused by it. "We will be patient when it comes to profits from the deal."

Yang did not say whether the company had sought approval for the acquisition before making a bid, as is required under government regulations, but the newspaper reported earlier that the company did orally seek for approval from government but was refused.

He reiterated that this acquisition would not undertake any debts and in future Hummer will develop a new power system to improve the fuel efficiency of its gas-guzzling vehicles.