Hummer-Tengzhong deal needs further reviews

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However the agreement does not mean that Tengzhong has managed to finally acquire the legendary brand as the transaction is subject to customary closing conditions and regulatory approvals or review by government agencies in the U.S. and China.

On June 2nd, GM and Tengzhong signed the initial agreement on the purchase of Hummer, but this raised doubts in China as Hummer vehicles have very high energy consumption. Many analysts indicated that the Chinese Commerce Ministry should not "ok" this deal because it is against industrial policies. However, Tengzhong and GM ignored those criticisms and finalized the agreement.