1/18, 9:23 AM (Source: TeleTrader)
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Brilliance approves sale of 25% stake in JV to BMW

BMW Group announced on Friday that it will acquire another 25% stake in the BMW Brilliance Automotive Ltd. (BBA) joint venture after its Chinese partner Brilliance China Automotive Holdings Ltd. approved the proposed sale of its shares to the German carmaker.

BMW already holds a 50% stake in the joint venture and in October announced plans to increase its shareholding in BBA to 75%. Today, some 63% of Brilliance shareholders backed the sale of the 25% stake to BMW. The German automaker noted the transaction is still subject to necessary regulatory approval and added it is expected to close in 2022 "at the latest when the joint venture requirement for auto manufacturing in China will be lifted."

The BBA joint venture was founded in 2003 when BMW and Brilliance agreed to manufacture select BMW vehicles in China. Last year, the two carmakers agreed to extend the joint venture, which was initially set to expire in 2028, to 2040.

Breaking the News / NP