Deals
BMW Strikes Deal for Potential Stake in China Battery Giant
- BMW in line to become first overseas carmaker with CATL stake
- Carmakers trying to secure supplies for electric vehicles
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BMW AG is the first overseas carmaker to get a potential toehold in Chinese electric-car battery maker Contemporary Amperex Technology Co. Ltd., obtaining the right to make an equity investment of as much as 2.85 billion yuan ($427 million).
BMW Brilliance, the German carmaker’s Chinese joint venture, is entitled to invest in CATL if the company plans to sell shares in China or abroad, according to a statement from the battery maker Tuesday. At CATL’s current stock price, the right would give BMW a stake of less than 2 percent of the company.