US vehicle manufacturer General Motors said on Tuesday that it had entered into a memorandum of understanding with a buyer for its Hummer brand. Under the terms of the agreement, and at the buyer's request, GM did not release the buyer's identity or nationality, but now media speculation had forced the company to announce the interested party as Chinese firm, Sichuan Tengzhong Heavy Industrial Machinery Co.

Based in the province of Sichuan, Tengzhong was a privately-owned company and a manufacturer of construction and energy industry equipment.

The company was only four years old, and had around 4 200 employees.

Buying the Hummer brand would see it expand into the premium off-road vehicle segment, through what was regarded as a strategic acquisition for Tengzhong.

Tengzhong would retain the Hummer headquarters and operations based in the US, with Hummer production at General Motors South Africa's Port Elizabeth plant already wrapped up.

The transaction was expected to close in the third quarter of this year, and was subject to customary closing conditions and regulatory approvals.

Financial terms of the agreement were not be disclosed.

Credit Suisse was acting as exclusive financial advisor, and Shearman & Sterling as international legal counsel to Tengzhong on this transaction.

Citi was acting as financial advisor to GM.

Further details had not been released pending final negotiations.

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