General Motors announced yesterday that it has entered into a memorandum of understanding (MoU) with a buyer for HUMMER.
Under terms of the agreement and at the buyer’s request, GM did not release the buyer’s identity or nationality.
However, due to the significant amount of media speculation and reports identifying the buyer, GM and Sichuan Tengzhong Heavy Industrial Machinery Co. issued a joint press release in the US yesterday afternoon, announcing Tengzhong as the potential purchaser of HUMMER.
Based in the Chinese province of Sichuan, Tengzhong is a privately owned company and a leading manufacturer of construction and energy industry equipment. It will expand into the premium off-road vehicle segment through what will be a strategic acquisition for Tengzhong and a catalyst for HUMMER’s growth in the U.S. and abroad. Tengzhong will keep the HUMMER headquarters and operations based in the US.
The transaction is expected to close in the third quarter of this year and is subject to customary closing conditions and regulatory approvals. Financial terms of the agreement will not be disclosed at this time.
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.
Further details have not been released pending final negotiations.
About General Motors:
General Motors Corp. (NYSE: GM), one of the world’s largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries.
With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany.