MUNICH (dpa-AFX) - German vehicle maker, BMW AG (BMW.L), said on Friday that it has acquired a further 25 percent stake in its Chinese joint venture, BMW Brilliance Automotive Ltd. or BBA, thus increasing the indirect holding in BBA to 75%.
BBA now indirectly holds the remaining 25 percent.
BBA is fully consolidated in the Group financial statements of BMW AG and the payment of the purchase price is expected to be completed by February 22.
The full consolidation of BBA is expected to boost the BMW's automotive segment revenues and EBIT.
Due to consolidation effects, no significant impact on the automotive EBIT margin is expected in the financial year 2022, the auto major said in a statement.
The absolute increase in the earnings before taxes of the automotive segment, which will no longer include BBA's equity earnings contribution, will also have an impact on the Group's pre-tax earnings and net income for the fiscal 2022.
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