China’s Sichuan Tengzhong Heavy Industrial Machinery has reached agreement with General Motors to extend the deadline for a deal to acquire the US company’s Hummer brand until the end of February.
A definitive agreement announced by the two companies in October 2009 allowing Tengzhong to buy the US auto giant’s sport utility brand expired yesterday, a Hong Kong-based spokeswoman for Tengzhong told AFP.
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The deadline was extended by one month as the two companies were still “awaiting approval from Chinese regulators” for the deal and would continue to work to wrap up the approval process, she said.
Tengzhong said it expected to get regulatory approval for the Hummer acquisition and finalise the transaction by late last year or early 2010.
But China’s commerce ministry, one of the government agencies tasked with approving overseas investments by domestic companies, has said it never received a formal application from Tengzhong.
The ministry did not immediately answer enquiries when contacted by AFP.
