By Kim Richters

BMW AG said Friday that it is increasing its stake in the Chinese joint venture with Brilliance China Automotive Holdings Ltd., after the joint company received the relevant business licence from authorities in China.

BMW's stake in the venture called BMW Brilliance Automotive Ltd. increases to 75% from 50% and it will be fully consolidated in the German car maker's financial statements. It expects the payment for the acquisition to be completed by Feb. 22.

BMW said its existing 50% stake in the joint company is being revaluated and should lead to a positive one-off impact for its financial result in the automotive segment of between 7 billion euros to 8 billion euros ($8 billion to $9.14 billion).

The consolidation will lead to revenue and earnings before interest and taxes in its automotive segment increasing significantly but no significant effect on the auto EBIT margin for 2022, said BMW. The automotive segment's free cashflow will see an one-time effect of around EUR5 billion.

Earnings before taxes and net income for the BMW group will also see an effect, it said.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

February 11, 2022 05:39 ET (10:39 GMT)

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