Bayerische Motoren Werke AG announced Jan. 18 that it is set to raise its stake in its Chinese joint venture BMW Brilliance Automotive Ltd. from 50% to 75%, after securing approval from JV partner Brilliance China Automotive Holdings Ltd.
Shareholders of Brilliance China voted in favor of selling a 25% stake in the JV to the German automaker. The proposal was approved by 63% of voting shareholders during a special general meeting held Jan. 18.
BMW said in October 2018 that it planned to increase its shareholding in the Beijing-based JV in light of China's decision to drop a restriction on foreign ownership of automakers. The potential deal was reportedly valued at €3.6 billion.
The transaction will also see the contractual term of the JV, which is set to expire in 2028, extended to 2040.
The deal is expected to close in 2022 at the latest, subject to approval from relevant authorities.