BMW iX1 in Shanghai
The Munich car manufacturer invests in the future – and in its own shares.
(Photo: AP)
Even before the end of the current share buyback program, BMW announced the next buyback campaign. By the end of 2025, the Munich carmaker wants to acquire its own shares for up to two billion euros, up to 350 million of them in the form of preferred shares, as the group announced on Wednesday. At the current rate, this corresponds to around three percent of the share capital.
Stock buybacks, like dividends, allow public companies to return excess capital to shareholders. The acquired shares are preferably redeemed, but at BMW they can also be issued to employees.
The new share buyback is scheduled to start after the completion of the current program, which is limited until the end of June. BMW has already bought back common and preferred shares for 1.4 billion euros in two tranches, the last tranche for a maximum of 490 million euros is currently running. In 2022, the Annual General Meeting authorized BMW to buy back shares with a volume of up to ten percent of the share capital within five years.
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