Germany's BMW, the world's largest premium carmaker, has reached a deal to sell the rights to the Rover brand, the company said on Tuesday, but it did not name the buyer. "A binding agreement was made," a spokesman for BMW said, confirming a report in German financial daily Handelsblatt.
BMW licensed the Rover brand to British investors in 2001 as part of a deal to dispose of MG Rover, while selling the Land Rover brand to Ford. The Munich-based carmaker kept the Mini brand, and builds the popular subcompact at its Oxford plant in Britain.
Outgoing Chief Executive Helmut Panke had said in mid-March that the group was in talks with several Chinese carmakers to sell the Rover rights, but said any decision would require the approval of Ford.
Nanjing Automobile, which acquired MG Rover assets and the sportscar brand MG last year during bankruptcy administration for MG Rover, along with Shanghai Automotive (SAIC) are considered to be the main candidates.
SAIC owns the design rights to two Rover models including the BMW-designed and engineered Rover 75.
The spokesman for BMW said Ford has less than 90 days to stop the deal. Ford said it was considering whether to exercise the provision for first refusal on the deal.
Last Wednesday, the Financial Times reported that the rights would be sold for 11 million pounds ($20.8 million) to SAIC.
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