BMW: Oddo BHF hails deal that is in 'the right direction'

(CercleFinance.com) - An analyst at Oddo BHF this morning made comments about BMW strengthening its presence in China, via the strengthening of its BBA joint venture, saying that this is a "expensive" operation, although one that makes sense.


Remember that on the fifteenth anniversary of BMW Brilliance Automotive (BBA), the BMW Group announced an extension of this joint venture contract with Brilliance China Automotive Holdings Ltd. (CBA) for another 22 years, i.e. until 2040. The German car maker will also increase its stake in BBA from 50% to 75%, a transaction that requires approval from competent authorities and CBA's general shareholder meeting.

BMW makes 24% of sales in China (this is China's weight in the global market), along with 25% of its profitability (this exceeds the average, although not disproportionately). The group's MT outlook remains upbeat. Its increased stake in the JV will make it easier to locate new vehicles, Oddo BHF says.

Note that the broker also maintains its "neutral" rating on the stock, with a target price of 80 euros.



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