Tengzhong says to close Hummer deal in Sept

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.