(Updates with background on the deal, foreign-ownership restrictions.)

 
   By Nathan Allen 
 

BMW AG (BMW.XE) said Friday that it has received shareholder approval to increase its stake in the BMW Brilliance Automotive joint venture in China, bringing the German group a step closer to assuming majority control over the company.

A majority of shareholders in Brilliance China Automotive Holdings Ltd. voted in favor of selling a further 25% stake in the joint venture to BMW, the German auto maker said.

BMW announced in October that it would pay 3.6 billion euros ($4.10 billion) to increase its ownership of the JV to 75% from 50%, becoming the first foreign car maker to take advantage of Beijing's relaxation of foreign-ownership limitations.

The stake increase is set to complete in 2022, when China fully lifts the requirement for auto makers in the country to operate as part of a joint venture with a local partner.

Foreign auto makers had previously been required to build vehicles in China through joint ventures in which they could hold a 50% stake at most.

As part of the deal, the joint venture will significantly expand its manufacturing base in Shenyang in northeast China.

 

Write to Nathan Allen at nathan.allen@dowjones.com

 

(END) Dow Jones Newswires

January 18, 2019 04:29 ET (09:29 GMT)

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