DOW JONES NEWSWIRES
Sichuan Tengzhong Heavy Industrial Machinery Co. confirmed that
it is in advanced talks to buy the Hummer brand from General Motors
Corp. (GM).
GM, which filed for bankruptcy protection Monday, said earlier
Tuesday that it had agreed to sell the unit but didn't identify the
buyer. The sales price is expected to be under $500 million, with
the deal seen closing by the end of the third quarter.
Tengzhong, a privately owned company in China, makes road,
construction and energy-industry equipment, but doesn't make
automobiles. The company will enter a long-term deal to procure
Hummer sport-utility vehicles from GM, securing more than 3,000
U.S. jobs.
The deal is expected to close in the third quarter and is
subject to regulatory approvals. Credit Suisse is advising Sichuan
Tengzhong, while Citigroup is advising GM.
The company plans to continuing to develop the Hummer portfolio
with more fuel-efficient and alternative-fuel models, a move that
could make the brand more relevant if gasoline prices continue to
climb.
-By Jay Miller, Dow Jones Newswires; 201-938-2331;
jay.miller@dowjones.com