POST TIME: 12 October, 2018 00:00 00 AM
BMW plans to take control of China joint venture

BMW plans to take control of China joint venture

German luxury carmaker BMW announced yesterday a plan to take control of its China joint-venture, the first foreign automaker to take advantage of Beijing's new ownership rules for the sector, reports AFP from Beijing.

BMW will acquire a further 25 per cent stake in the venture with Brilliance China Automotive for 3.6 billion euros ($4.2 billion), the company said, bringing its stake to 75 per cent by 2022 when the deal closes.

Foreign automakers have long been restricted to holding no more than a 50 per cent stake in their China operations, but Beijing decided to relax the ownership caps this year.

The reforms are part of Beijing's plan to further open its economy to foreign business, after years of facing pressure from the United States and Europe.

"BMW is the first beneficiary of the Chinese government's relaxation of restrictions on foreign investment in the auto industry," Chinese premier Li Keqiang told BMW Chairman Harald Kruger at a meeting Wednesday, according to a government transcript.