BERLIN, (Reuters) –BMW received permission from Chinese authorities for it to double its Chinese stake in BMW Brilliance Automotive, from 50% to 75%. The announcement was made by the carmaker on Friday.

BMW claimed that the revaluation will have a positive impact of 7-8 billion euros (or $8-9 billion) on automotive segments’ financial performance, and a free cash flow increase of approximately 5 billion euros.

BMW Brilliance Automotive will be fully consolidated in the group financial statements of BMW AG, effective February 11. It added that more information would be provided when it publishes its annual results, which is scheduled for March 16.

The remaining 25% will be retained by Brilliance China Automotive Holdings Ltd., its Chinese partner.

BMW said in October 2018 https://www.reuters.com/article/us-bmw-jointventure-brilliance-china-idUSKCN1MK2Z9 it would pay 3.6 billion euros to take control of its main joint venture in China, after the country announced it would lift longstanding rules capping foreign ownership for all auto ventures from 2022 onwards.

BMW shipped 846 237 BMW and MINI cars to Chinese customers in 2021. That’s nearly 40% of the company’s total sales. It was up 9 percent from last year.

The carmaker will add production of its X5 in China, previously imported from the United States, in the second quarter of the year at the BMW Brilliance joint venture, a U.S. supplier source told Reuters https://www.reuters.com/article/bmw-china-idCNL1N2SY21E in December.

($1 = 0.8781 euros)