MUNICH (dpa-AFX) - BMW (BMW.L, BAMXF.PK, BAMXY.PK) said Friday that the long-term expansion of the BMW Brilliance Automotive Ltd. or BBA Joint Venture has achieved a significant milestone. A Special General Meeting of Brilliance China Automotive Holdings Ltd. or CBA in Hongkong approved the sale of a 25 percent shareholding in BBA to the BMW Group. Around 63 percent of the represented shareholders voted in favor of this step.
As announced in October on the 15th anniversary of BBA, the BMW Group intends to increase its stake in BBA from 50 percent to 75 percent and both partners signed a corresponding agreement. As part of the agreement the contractual term of the joint venture, which would currently expire in 2028, is to be extended to 2040. The deal is scheduled to close in 2022 at the latest when the joint venture requirement for auto manufacturing in China will be lifted.
From the early 2020s the total annual production capacity of BMW automobiles at the BBA plants will gradually increase to 650,000 units, creating 5,000 new jobs, the company said.
Copyright RTT News/dpa-AFX