SICHUAN, Feb. 26 -- Sichuan Tengzhong Heavy Industrial Machinery Co Ltd (Tengzhong) Thursday announced that it is withdrawing its proposed acquisition of Hummer from General Motors (GM), having been unable to obtain clearance of the transaction from the Chinese regulators within the proposed deal timeframe.
Following talks with GM, both sides have decided to discontinue discussions on the transaction and terminate their definitive agreement.
Tengzhong said it was disappointed that the transaction could not be further pursued, but respected the outcome.
Tengzhong worked earnestly to achieve an acquisition that it believed to be a tremendous opportunity to acquire a global brand at an attractive price, the company said.
The renewed investment to be made by Tengzhong and other investors would have provided Hummer's existing management team the ability to build greener utility vehicles that would have been attractive and useful in new markets such as China as well as the existing core markets.
Tengzhong expressed its sincere thanks to GM for working diligently with it. Meanwhile, the company also expressed its gratitude and good wishes to Hummer CEO Jim Taylor and the Hummer team, as well as the 3,000 people who produce and support the brand.