HUMMER purchaser named

Article By: iafrica.com

Due to the significant amount of media speculation and reports identifying the buyer, GM and Sichuan Tengzhong Heavy Industrial Machinery Co on Tuesday afternoon announced Tengzhong as the potential purchaser of HUMMER, General Motors SA (GMSA) said on Wednesday.

This came after General Motors announced that it had entered into a memorandum of understanding with a buyer for HUMMER.

However, under terms of the agreement and at the buyer’s request, GM did not release the buyer’s identity or nationality.

Based in the Chinese province of Sichuan, Tengzhong is a privately owned company and a leading manufacturer of construction and energy industry equipment.

It will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER’s growth in the US and abroad. Tengzhong will keep the HUMMER headquarters and operations based in the US.

The transaction was expected to close in the third quarter of this year and was subject to customary closing conditions and regulatory approvals.

Financial terms of the agreement will not be disclosed at this time.

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.

Further details have not been released pending final negotiations, said GMSA.

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