Tengzhong seeking approval to buy HUMMER, expects deal by early 2010

It was reported last week that China”s Sichuan Tengzhong Heavy Industrial Machinery has closed a deal with General Motors Company to buy the Detroit automaker’s HUMMER brand. Apparently, nothing is final just yet; Tengzhong is now in the process of seeking regulatory approval and aims to close the deal by early 2010.

“We have started communicating with the relevant regulatory bodies and will continue to support the application process in accordance with the requirements,” a spokeswoman for Tengzhong said.

Tengzhong, which has no experience in the auto industry, could put itself in a black hole by financing the development of a “greener” HUMMER brand by itself, said John Zeng, an analyst with consulting firm IHT Global Insights.

Zeng said that it would be hard for Tengzhong to get loans from Chinese banks.

It has been reported that Tengzhong will pay $150 million for HUMMER.

– By: Omar Rana

Source: Reuters