DGAP-Adhoc: BMW Group agrees Long-term Expansion of the Joint Venture BMW Brilliance Automotive Ltd. in China

2018. október 11., csütörtök, 01:17





DGAP-Ad-hoc: Bayerische Motoren Werke Aktiengesellschaft / Key word(s): Joint Venture


BMW Group agrees Long-term Expansion of the Joint Venture BMW Brilliance Automotive Ltd. in China


11-Oct-2018 / 01:17 CET/CEST


Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.


The issuer is solely responsible for the content of this announcement.




The BMW Group intends to increase its stake in the BMW Brilliance Automotive Ltd. ("BBA") joint venture from 50 percent to 75 percent. The company has signed an agreement with its joint venture partner, a subsidiary wholly owned by Brilliance China Automotive Holdings Ltd. ("CBA"), to acquire an additional 25 percent shareholding in BBA. The two partners agreed on a purchase price of an equivalent of 3.6 billion euros. The contractual term of the joint venture, which would currently expire in 2028, is to be extended to 2040 as part of the agreement.



The strategic goal pursued by the BMW Group is to further strengthen its long-term cooperation with CBA, increase production capacity at the existing sites in Shenyang and continue to expand the localization of additional models including "new energy vehicles" ("NEVs").



The prerequisite for the aforementioned strategic steps in China is the acquisition of the additional shares. This transaction is subject to the approval of the relevant authorities and the consent of the CBA Shareholders" Meeting.



Based on the current situation, the deal is scheduled to close in 2022, the year in which the joint venture requirement for auto manufacturing in China ends. The closing will result in BBA being fully consolidated in the BMW AG"s Group financial statements and is accordingly expected to have a significant positive valuation effect in the financial year in which the deal closes.





Contact:

Torsten Schüssler

Head of Investor Relations

Tel.: +49-89-382-25387








11-Oct-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de





















Language: English
Company: Bayerische Motoren Werke Aktiengesellschaft

Petuelring 130

80788 Munich

Germany
Phone: +49 (0)89 382 0
Internet: www.bmwgroup.com
ISIN: DE0005190003, DE0005190037
WKN: 519000 , 519003
Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange





 
End of Announcement DGAP News Service




730761  11-Oct-2018 CET/CEST







fncls.ssp?fn=show_t_gif&application_id=730761&application_name=news&site_id=geo_holding_tug
Tilos a hír bármilyen adatbázisba történő mentése vagy annak továbbítása harmadik fél számára;kereskedelmi viszonylatban vagy kereskedelmi céllal csak a Deutsche Gesellschaft für Ad-hoc-Publizität mbh írásos engedélyével történhet.