China's Ministry of Commerce: no application for Hummer deal received

21:22, October 10, 2009      

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China's Ministry of Commerce said Saturday it has not received any application from Sichuan Tengzhong Heavy Industrial Machinery Co. over the Hummer deal.

General Motors Co. and Tengzhong announced Friday that the two companies have finalized the deal of Tengzhong acquiring GM's off-road Hummer brand.

Under the deal, Tengzhong will acquire the ownership of the Hummer brand, its trademark and trade names, as well as use of patents needed for the manufacture of Hummer vehicles. The Chinese company will also assume Hummer's dealership agreements with the brand's existing dealers.

The purchase will be made through an investment entity, in which Tengzhong will hold 80 percent of stakes.

Financial terms of the agreement were not disclosed. Media reports said the price is about 150 million U.S. dollars, but it was not confirmed.

According to China's regulations, overseas investment that involve more than 100 million U.S. dollars should be approved by the Ministry of Commerce.

Tengzhong, a Chengdu-based little-known heavy machinery maker reached a preliminary agreement with GM in early June to buy Hummer, an American luxury automobile marque.

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