BMW Increases Stake in Chinese JV BMW Brilliance Automotive
February 11 2022 - 4:54AM
Dow Jones News
By Kim Richters
BMW AG said Friday that it is increasing its stake in the
Chinese joint venture with Brilliance China Automotive Holdings
Ltd., after the joint company received the relevant business
licence from authorities in China.
BMW's stake in the venture called BMW Brilliance Automotive Ltd.
increases to 75% from 50% and it will be fully consolidated in the
German car maker's financial statements. It expects the payment for
the acquisition to be completed by Feb. 22.
BMW said its existing 50% stake in the joint company is being
revaluated and should lead to a positive one-off impact for its
financial result in the automotive segment of between 7 billion
euros to 8 billion euros ($8 billion to $9.14 billion).
The consolidation will lead to revenue and earnings before
interest and taxes in its automotive segment increasing
significantly but no significant effect on the auto EBIT margin for
2022, said BMW. The automotive segment's free cashflow will see an
one-time effect of around EUR5 billion.
Earnings before taxes and net income for the BMW group will also
see an effect, it said.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
February 11, 2022 05:39 ET (10:39 GMT)
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