China’s Sichuan Tengzhong Heavy Industrial Machinery said Monday it had agreed with General Motors to extend the deadline for a deal to acquire the US firm’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 vehicle brand was to expire on Sunday, a Hong Kong-based spokeswoman for Tengzhong told AFP.
The deadline was extended by one month as the two companies are still “awaiting approval from Chinese regulators” for the deal and will continue to work to wrap up the approval process, she said.
Tengzhong, which was little-known when the deal was signed, said shortly after the signing that 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.
