|Type||Privately owned company|
Sichuan Tengzhong Heavy Industrial Machinery Company Ltd (simplified Chinese: 四川腾中重工机械有限公司; traditional Chinese: 四川騰中重工機械有限公司; pinyin: Sìchuān Téngzhōng Zhòng Gōngjīxiè Yǒuxiàn Gōngsī), usually shortened to simplified Chinese: 腾中重工; traditional Chinese: 騰中重工; pinyin: Téng Zhōng Zhòng Gōng) is based in Chengdu, China. Sichuan Tengzhong is a privately owned company known for making a wide range of road equipment, such as bridge piers, highway construction and maintenance machinery. Sichuan Tengzhong has been moving more into heavy-duty trucks, including tow trucks and oil tankers.
Aborted acquisition of Hummer
On June 1, 2009, as a part of General Motors Chapter 11 reorganization announcement, GM revealed that Hummer brand would be discontinued. However, the following day GM announced that instead it had reached a deal to sell the brand to an undisclosed buyer. On June 2, 2009 GM announced the sale of Hummer to a non-disclosed Chinese company. The New York Times reported Tuesday that the buyer would be the Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a machinery company in western China. Late Tuesday Sichuan Tengzhong itself posted it on their own website. The transaction was expected to close in the third quarter of 2009, subject to customary closing conditions and regulatory approvals. Financial terms of the agreement were not disclosed. 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.
General Motors announced on October 9, 2009 that they have sold their entire stake in the Hummer brand to Sichuan Tengzhong Heavy Industrial Machinery and a group of private investors (Mr. Suolang Duoji, a private entrepreneur with holdings that include the Hong Kong-listed thenardite producer Lumena, will hold the remaining 20 percent stake.). Sichuan now owns 80% of the company, Autoblog reports. The sale will net GM around $150 million, although the transaction still has to be approved by both U.S. and Chinese regulatory agencies, which is anticipated to occur this year (2010).
The deal includes manufacturing to continue in the two plants that GM already uses to produce the Hummer trucks through June 2011, with a possible extension until 2012.
- Sichuan Tengzhong (Official statement)
- China's Changfeng had talks on GM's Hummer: source reuters.com, Mon Aug 18, 2008 4:19am EDT