GM's Sale of Hummer to Chinese Company Imminent
October 09, 2009
General Motors will finalize its sale of Hummer to China's Tengzhong as early as Friday, various media outlets, citing unnamed sources, report.
GM likely will take in about $150 million for the sale, far less than the $500 million it wanted.
Sichuan Tengzhong Heavy Industrial Machinery, a little-known heavy machinery maker, has been in negotiations with GM since June.
Tengzhong still needs approval from the Chinese government, including the Ministry of Commerce, which industry and government officials say holds the ultimate authority over the deal.
"I think the Tengzhong-Hummer deal is very likely to go through as commerce ministry officials had said repeatedly that overseas acquisitions would be rational behavior amid the global financial crisis," Yi Junfeng, an analyst with Changjiang Securities told Reuters.
Photo by GM
A fleet of Hummer H3Ts traverse a rocky trail.
Posted by Michelle Krebs at 6:39 AM under Companies , GM , Rumors | Comments (0) | digg this | Seed Newsvine
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