Tengzhong

Sichuan Tengzhong Heavy Industrial Machinery Co., Ltd. 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 1 June 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 it had reached a deal to sell the brand to an undisclosed buyer.[1] On 2 June 2009 GM announced the sale of Hummer to a non-disclosed Chinese company.[2] 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.[3][4] Late Tuesday Sichuan Tengzhong itself posted it on their own website.[5] 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.[5] Credit Suisse acted as exclusive financial advisor and Shearman&Sterling acted as international legal counsel to Tengzhong on this transaction. Citi acted as financial advisor to GM.[5] Prior to the 2009 sale a handful of other Chinese automakers, including Chang Feng, expressed interest in the brand, but all declined to make a formal offer.[6]

The deal include the continuation of manufacturing in the two plants that GM already used to produce the Hummer trucks until June 2011, with a possible extension until 2012.

On 24 February 2010, The Chinese Ministry of Commerce rejected Tengzhong's bid to purchase Hummer from General Motors, and that the deal had collapsed. [7] The later stated the same and that they will discontinue the brand. Some reports were saying that Tengzhong would instead purchase it privately through the company's new supporter, J&A Tengzhong Fund SPC, a private equity investment fund owned by an offshore entity that was recruiting private investors to buy into its acquisition plan.[8] At the time, even established companies were in difficulties. With them, small companies were also declining (including Tengzong). Also falling was also Hummer's value, with lowered customer demand.[9]

After that, some other buyers were approached to buy the brand, but those deals also failed. Finally, the Hummer brand was defunct on 24 May 2010.

References

  1. ^ https://www.nytimes.com/2009/06/03/business/03auto.html
  2. ^ NBC News
  3. ^ NBC News
  4. ^ https://www.nytimes.com/2009/06/03/business/03auto.html?_r=1&hp
  5. ^ a b c "Archived copy". Archived from the original on 2009-06-08. Retrieved 2009-06-02.CS1 maint: archived copy as title (link)
  6. ^ China's Changfeng had talks on GM's Hummer: source reuters.com, August 18, 2008
  7. ^ (Reuters)
  8. ^ Dealbook (24 February 2010). "Tengzhong Seeks Private Equity Solution for Hummer". DealBook. Retrieved 2019-08-05.
  9. ^ Bunkley, Nick (2010-02-24). "G.M. to Close Hummer After Sale Collapses". The New York Times. ISSN 0362-4331. Retrieved 2019-08-05.