Dust settles, BMW's BMW Brilliance share ratio increases to 75%

On February 11, the BMW Group officially announced that its new joint venture contract in China, BMW Brilliance Automotive Co., Ltd. (hereinafter referred to as "BMW Brilliance"), came into effect.

According to the new joint venture contract, with immediate effect, the BMW Group's shareholding in BMW Brilliance will be changed to 75%, and the remaining 25% of the shares will be indirectly held by its partner Brilliance China Automotive Holding Co., Ltd.

The validity period of the contract has been extended until 2040 accordingly.

"Today marks an important step for the BMW Group to invest in China, and we will continue to strengthen our long-term commitment to the Chinese market and continue our business development." Chiptzer, Chairman of the BMW Group, said, "We have always believed that the success of the BMW Group in China is inseparable from the growth of the joint venture BMW Brilliance. The new joint venture contract has been extended until 2040, which will lay a solid foundation for BMW's sustainable business success in China, while also contributing to the development and prosperity of local and other interested parties in Liaoning. ”

As a concrete measure for BMW Group to increase investment in China, BMW Brilliance will usher in a further increase in production capacity this year, and its existing plant in Shenyang's Dadong District is undergoing a comprehensive expansion, and a new plant in Tiexi District is also under construction. Thanks to this, the BMW Group's production capacity in China will be expanded, the variety of locally produced models will be further increased, and more pure electric models will be introduced for domestic production.

BMW Brilliance Digital Factory, Source: BMW Group

Gao Le, President and CEO of the BMW Group Greater China, further said, "We are very grateful to the Chinese governments at all levels for their strong support for BMW's development in China. The new joint venture contract extended to 2040 and the approval of the related BMW investment project in Liaoning are the latest examples of China's expansion of high-level opening up, especially in the automotive industry. ”

In fact, the change in the shareholding ratio of the BMW Group's joint venture in China was finalized as early as 2018.

Back on June 28, 2018, the state confirmed that it will abolish the foreign ownership limit for commercial vehicles in 2020, the foreign ownership limit for passenger cars in 2022, and the restriction on no more than two joint ventures at the same time. Just a few months later, on the 15th anniversary of BMW Brilliance (October 11), the BMW Group officially announced that it and Brilliance China jointly announced the extension of the joint venture contract period until 2040, and will increase investment in China, and plans to increase the shares of BMW Brilliance, a joint venture in China, from 50% to 75% after the policy restrictions disappear in 2022.

That is to say, today's official announcement is just a formal announcement to the outside world, and everything has fallen to the ground. And according to Brilliance China (01114. HK) issued an announcement showing that the 25% equity is worth 27.941 billion yuan.