BMW has received the green light to acquire a majority stake in its joint venture with Brilliance in China.
The company received the corresponding approval on Friday, BMW announced.
The Munich-based company will hold 75 percent of the shares in BBA, the Chinese partner Brilliance China Automotive the rest. The revaluation will result in a positive one-off effect in the financial result of seven to eight billion euros, it said.
After the takeover, BMW can fully consolidate the figures in China.
As a result, sales and operating profit (EBIT) of the auto segment rose significantly in the current year, BMW explained.
Cash inflow should also increase if BMW gains access to BBA's coffers;
a figure of five billion euros is expected here.
Details are to be given in the annual report, which will be published in mid-March.
With the step, BMW benefits from relaxed regulations in China: Only since this year have foreign car manufacturers been allowed to hold the majority in joint ventures in the People's Republic.
In October 2018, the Munich-based company agreed to increase its stake in the joint venture from 50 to 75 percent.
BMW will pay 3.6 billion euros for this.
China has long been the most important single market for BMW, and the plants there are being expanded.
For the Munich-based company, this offers the opportunity to become less dependent on imports to China.