BMW to Take Control of China Joint Venture in $4 Billion Deal

[rainman + 263]

BMW AG will assume majority control of its Chinese joint venture, becoming the first foreign auto maker to take advantage of Beijing’s easing of long criticized rules that limit foreign ownership in the sector. The German auto maker will pay €3.6 billion (about $4 billion) to increase its stake in its partnership with Briliance China Automotive Holdings LTD: to 75 percent from 50 percent. The new joint-venture agreement lasts through 2040, extended from 2028.

[Petar + 76]

Good deal. Soon Chinese will be placing chips in the BMW cars

[jpZelabal + 63]

It could be a huge  signals a big relaxation of PRC strictures around foreign investment and participation in economy. No doubt other JVs will follow. But, big risk for BMW to increase China exposure in current climate.  

[DA? + 301]

It's going to be interesting how this one plays out. The problem for BMW in the Chinese market is their lack of skill in making EV's which are becoming necessary there, I don't know how the law will apply to this venture. Maybe it makes sense as BMW seem to be loosing market share in some areas.

[Pavel + 384]

I'll be interested to see how it plays out but suspect it will be the case that, to paraphrase Henry Ford: foreign car makers can have any contract they want, so long as it's a joint venture contract.

[ThunderBlade + 231]

Business will go where the market is. It's the same reason Apple's CEO is currently in China despite the trade war and SuperMicro scandal....