China’s Tengzhong is a little-known machinery maker in southwest China’s Sichuan province. They have been buying GM’s Hummer for what, more than half a year now? Today they said that they and GM have agreed not to rush it and to push back the deadline for the closing from January 31 to the end of February. Delaying it was a prudent move, because there still is no approval from Chinese regulators. If they don’t have approval now, then they probably won’t have it by end of February either. Due to the Chinese Lunar New Year festivities, most of China will be closed for most of February, and the really important regulators will not be back from Spring vacation before March.
Reuters talked to Suo Lang, chairman of Chinese chemical maker Lumena Resources Corp and shareholder in Tengzhong. He’s widely regarded as the man behind the deal.
He confirmed to Reuters that the rumored price tag of $150m is correct. And he thinks he got a deal. Hummer is “the king of off-road vehicles. It’s especially suitable for China, where natural disasters happen often.”
As for the timeline, Suo Lang seems to be more in tune with Chinese customs: “We hope the deal can be concluded this spring. But it all depends on the government. They have a lot to consider, such as environmental and other issues.” End of February? Did we say which February?
This “deal” is starting to carry the aroma of vaporware.
In other news, GM has received a late bid for Oldsmobile. GM spokesfolks say they are considering their options and hope to come to an agreement with the undisclosed bidder at a time to be disclosed on a need to know basis more or less at some point in the future as viable.
It’s my opinion that Hummer is the brand most likely to succeed once it’s finally sold in late 2010 or 2011. The price is fair and since there’s no EU money needed it could actually happen.
Well, since we are all getting used to the centrally-planned economy here in the USA, this actually sounds very familiar.
Sounds like their M&A Czar is on holiday for most of February?
Ya gotta hate “delayed Hummers”
“uninevitible feeling of inevitibility, eh?
Negotiations for someone to produce Hummers for you should be entered into carefully, with one eye out for the laws involved, and the other focused on the fact that a bad decision can be expensive and painful.
What are they getting for the $150million? I’m assuming it’s not everything that goes into all Hummers.
Hope this one goes through. Along with Tata buying LR, it should be interesting to see what kind of off/poor road vehicles get built by people who may actually need to drive on non paved roads from time to time.