Currently reading: GM 'Hummer deal still on'
Sale to Sichuan Tengzhong Heavy Industrial Machinery will go ahead, says GM

General Motors has stressed that Chinese company Sichuan Tengzhong Heavy Industrial Machinery is still in talks to buy Hummer.

GM officials added that the company will begin talking with regulators this week in a bid to obtain government approval for Tengzhong to buy the Hummer brand by the end of September.

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It is unusual for companies to engage regulators before a formal agreement has been reached, but GM is reacting to the widespread skepticism surrounding the deal.

"We will start discussions with the Chinese government this week on the Hummer deal," said Micahel Albano, a spokesman with GM's Asia Pacific operations. "We can't sign the deal unless we have approval from the government."

Despite unnamed Chinese government sources rubbishing the proposed deal, the Ministry of Commerce, which also scrutinises all major cross-boarder equity deals by Chinese companies, has been more upbeat. It said that Tengzhong's proposed Hummer purchase was normal for a company seeking to take advantage of the global downturn.

A Tengzhong representative told teh Reuters news agency the company had been co-operating with Chinese regulators but declined to provide further information.

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Mckayla Cole 26 September 2019

Good to read

General Motors has purchased Hummer Brand by giving price at the bid and that is highly admirable. I go here to get my assignment help nz for easy completion of papers. General Motors acquired the permission of Chinese government a long time ago but it took time in final deal.