BMW Sees $9.1 Billion Profit Boost From Raising China Stake

(Bloomberg) — BMW AG said taking control of its Chinese car-making joint venture will bolster earnings by as much as 8 billion euros ($9.1 billion), sending a signal to competitors that it pays to assume control of operations in the world’s largest car market.

Chinese authorities gave BMW permission to raise its stake in the business with Brilliance China Automotive Holdings Ltd. to 75% from 50%, the German company said Friday. The move will lead to a positive one-time effect of 7 billion euros to 8 billion euros for BMW’s main automotive segment.