Allen & Overy has advised Germany’s BMW on its 3.6 billion euros ($4.2 billion) agreement to take control of its main joint venture in China, with Shearman & Sterling and JunHe advising the JV partner, Brilliance China Automotive Holdings.

According to Reuters, this is the first such move by a global carmaker as Beijing starts to relax ownership rules for the world’s biggest auto market.  The deal also marks a milestone for foreign carmakers which have been capped at owning 50 percent of any Chinese venture and have had to share profits with their local partner, and could encourage rivals such as Mercedes maker Daimler.

The move will likely spur BMW to shift more production to China, helping to protect profits amid a whipsawing trade war between Washington and Beijing that has raised the cost of BMW importing cars manufactured at its U.S. plant in South Carolina, Reuters added.

The Allen & Overy team was led by Shanghai partner Jack Wang and Hong Kong partner Michael Jacobs. The firm also recently advised BMW on its 50:50 joint venture with Chinese manufacturer Great Wall Motor Company to produce MINI electric vehicles.

The JunHe team was led by Beijing parnters Tao Bai and Hao Peng. 

安理国际、君合、谢尔曼协助宝马获得中国合资企业控股权

安理国际律师事务所协助德国汽车制造商宝马集团以36亿欧元（约合42亿美元）收购华晨宝马合资公司25%股权，持股比例将增至75%。此次交易中，美国谢尔曼▪思特灵律师事务所和君合律师事务所为华晨中国汽车控股有限公司的法律顾问。

据路透社报道，宝马集团是中国政府放宽汽车行业外商来华投资股比限制后的首个国际汽车制造商。一直以来，中国规定合资企业中外资持股不得超过50%，持股上限的规定也一定程度上限制了外资拿到的利润。宝马这次的股权收购无疑具有里程碑意义，也会带动更多包括戴姆勒在内的全球汽车制造商开启变革。

此举也将促使宝马将更多产能转移至中国，减少利润贬损。现阶段，中美之间的贸易摩擦仍时有加剧，导致宝马从其美国的南卡罗来纳州工厂进口汽车的成本上升，另据路透社报道。

安理国际律师事务所团队由上海办公室合伙人Jack Wang及香港办公室合伙人Michael Jacobs主导。安理国际近期还协助宝马（荷兰）控股公司与中国长城汽车股份有限公司完成了合资经营合同的签署，双方各持股50%，新的合资公司将首推纯电动MINI。

君合律师事务所团队由北京办公室合伙人白涛及彭浩主导。

To contact the editorial team, please email ALBEditor@thomsonreuters.com.