Luxury carmaker BMW is coughing up a whopping 3.6 billion $4.2 billion for control of its main joint venture in China, illustrating the value of a placeholder in the world’s largest car market.
The Munich-headquartered auto manufacturer has agreed to raise its stake in BMW Brilliance China Automotive Holdings, from 50% to 75%, it said in a statement on Thursday.
The deal is positive for the shareholders of its local partner, Brilliance China Automotive, which faced the prospect of the venture, its main profit engine, expiring within four years.
Shares in Brilliance China Automotive have fallen by about 40% since April when...
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