Red Star Capital Bureau noted that on February 11, the official website of BMW Group released the news that from now on, the new joint venture contract of BMW Brilliance Automobile Co., Ltd. (hereinafter referred to as "BMW Brilliance"), a joint venture of BMW Group in China, officially came into effect, and the validity period of the joint venture cooperation between BMW Group and its Chinese partners was extended to 2040.
According to the new contract, from February 11, 2022, the BMW Group's shareholding in BMW Brilliance will increase from 50% to 75%, and as of that date, BMW Brilliance will be fully consolidated into the group financial statements of BMW AG, which is expected to have a positive impact of 7 billion to 8 billion euros (about 50.7 billion to 57.8 billion yuan) to the financial data of BMW's automotive division.
On February 11, Brilliance Auto (01114. HK) also issued an announcement that BMW Brilliance has received a new business license issued by the Shenyang Dadong District Market Supervision and Administration Bureau. The equity transfer is expected to be closed on February 18 for a total consideration of RMB27,941 million and is expected to be received on or before February 22. After the closing, Brilliance Auto will continue to indirectly hold a 25% stake in BMW Brilliance, and BMW Brilliance will be an associate of Brilliance Automotive.
BMW Group said that in the past decade or so, BMW Brilliance's investment in Liaoning Province has exceeded 10 billion euros (about 72.4 billion yuan). In 2021, the BMW Group sold 850,000 vehicles (including BMW and MINI) in China, an increase of 9% year-on-year, accounting for nearly 40% of the total global sales; in 2021, BMW Brilliance's total production exceeded 700,000 vehicles.
Oliver Zipse, Chairman of the Board of Directors of the BMW Group, said: "Today is an important step for the BMW Group and we will expand our development and success in the Chinese market. Our continued success in the world's largest automotive market can only be complemented by further developments by BMW Brilliance. ”
It is worth noting that since January 1, the National Development and Reform Commission and the Ministry of Commerce have issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2021 Edition) to abolish the restriction on foreign ownership in passenger car manufacturing and the restriction that the same foreign investor can establish two or less joint ventures in China to produce similar vehicle products.
In April 2018, the shareholding limit of China Automobile Joint Venture was officially determined to abolish the phased transition. In October of the same year, at the press conference of the 15th anniversary of BMW Brilliance, Brilliance Group and BMW Group jointly announced that BMW Group would acquire 25% of the shares of BMW Brilliance, and BMW Brilliance became the first joint venture car company to announce a change in the share ratio after the introduction of the policy.
Red Star News reporter Yu Yao Tao Yueyang
Edited by Yu Dongmei
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