No impact on the EBIT margin is expected. A further specification of the one-off effect will be made in the coming weeks on the basis of BBA’s balance sheet as at 11 February 2022,” BMW writes in it’s ad-hoc announcement.Īccording to BMW, the further effects of the full consolidation will be a “significant increase” in the revenue and EBIT of the automotive division. “The revaluation of the shares already held in BBA of 50% as of 11 February 2022 will result in a positive one-off effect in the financial result of the Automobiles segment in the amount of EUR 7 to 8 billion, based on a preliminary valuation. Since BMW now holds the majority, BBA will be fully consolidated in BMW AG’s consolidated financial statements. According to the information from 2018, the purchase price is 3.6 billion euros. It merely states that the payment should be completed by 22 February. The amount BMW will pay Brilliance for the 25 per cent is not disclosed in the announcement. Previously, the shares were split exactly 50:50. The joint venture contract has been extended until 2040 and lays the foundation for sustainable business success, creating growth and prosperity in the province of Liaoning and beyond.”īMW now holds 75 per cent of BBA, while joint venture partner Brilliance still holds 25 per cent. “We firmly believe that our continued success in the world’s largest automotive market can only go hand in hand with the growth and further development of our BBA joint venture. “Today marks an important step, as we continue to expand our long and successful commitment to China,” said BMW CEO Oliver Zipse. This meant that the extension of the joint venture agreement until 2040, which was announced in 2018 still under Harald Krüger, became effective and with it the increase of BMW’s shareholding to 75 per cent. The document was also issued with effect from 11 February, BMW said. BBA had previously received the necessary business licence from the Chinese authorities. One of the first acts as the new majority owner is the announcement of a new plant for the joint venture.Īccording to BMW, the full consolidation took place directly on 11 February. As announced three years ago, the Munich-based carmaker holds only 75 per cent of the shares. BMW has acquired a majority stake in BMW Brilliance Automotive.
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