Allen & Overy advises BMW on its EUR 3 billion transaction to acquire control of its JV with Brilliance China Automotive
30 Oktober 2018
Allen & Overy has advised the BMW Group on its contract extension for the joint venture BMW Brilliance Automotive Ltd (BBA) and its intention to increase its stake in BBA from 50 percent to 75 percent. BBA is a joint venture between BMW and Brilliance China Automotive Holdings Ltd (CBA). The transaction is subject to the approval of the relevant authorities and the consent of the CBA Shareholders’ Meeting.
The joint venture also announced an investment of more than three billion euros in new and existing plant structures in Shenyang over the coming years.
This landmark transaction is the first move by a foreign automotive brand to take a controlling stake in an automotive manufacturing joint venture in China. In June this year, China’s National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) announced amendments to the National Negative List, which included a raft of measures to open up the market further for foreign investment in previously restricted sectors including finance, automotive, mining, infrastructure, energy and resources and agriculture.
Allen & Overy also recently advised BMW on its 50:50 joint venture with Chinese manufacturer Great Wall Motor Company to produce MINI electric vehicles.
The Allen & Overy team comprised lawyers across our Hong Kong and China offices and was led by partner Jack Wang (Shanghai) and Michael Jacobs (Hong Kong), with support from counsel Donnelly Chan (Hong Kong) and senior associate Paul Jing (Shanghai).