Sichuan Tengzhong picks up Hummer from GM
June 17, 2009 | BY
clpstaff &clp articles &Sichuan Province-based Chinese engineering company Tengzhong Heavy Industrial Machinery is acquiring Hummer from troubled General Motors for an undisclosed…
Sichuan Province-based Chinese engineering company Tengzhong Heavy Industrial Machinery is acquiring Hummer from troubled General Motors for an undisclosed amount.
Tengzhong will acquire the rights to the Hummer brand, along with a senior management and operational team. It will also assume existing dealer agreements relating to Hummer's dealership network and is expected to sign a long-term contract assembly and component and material supply agreement with GM.
Although subject to customary closing conditions and regulatory approvals, if the deal successfully closes in the third quarter of this year GM said it expects to save more than 3,000 jobs.
Shearman & Sterling advised Tengzhong on the deal. M&A partners Paul Strecker and Lee Edwards led its team, which included Douglas P Bartner and Michael Torkin (bankruptcy and reorganisation), Tina Patel (IP), and Beau Buffier and Silvio Cappellari (antitrust). Jun He acted as PRC counsel to Tengzhong.
GM largely handled the acquisition of Hummer internally with Gil Kaminsky leading its team. Detroit firm Honigman Miller Schwartz and Cohn assisted with partner Norman Beitner leading its team.
Tengzhong is one of China's major privately owned engineering companies and manufacturers of heavy machinery equipment with a presence in special-use vehicles, road and bridge construction equipment and construction and energy industry equipment.
GM filed for bankruptcy protection on June 1, marking the biggest failure of an industrial company in US history. The final terms of the deal are subject to final negotiations.
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