BMW pays $4.2 billion to take control of Chinese Joint Venture

BMW will pay 3.7 billion euros ($4.2 billion) to take majority control of its Chinese joint venture (JV).

BMW will control the JV after securing the necessary licence from Beijing.

BMW is increasing its stake in the venture with Brilliance Auto Group to 75% from 50%.

BMW said the deal would have a one-off positive effect of 7-8 billion euros ($8-9 billion) on the financial results of its automotive business, and boost free cash flow by about 5 billion euros.

BMW expects sales in China to grow into 2022, after seeing 9% growth in BMW and Mini deliveries last year to 846,237 vehicles.

The BMW Brilliance Automotive joint venture produced 700,000 vehicles in 2021.

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