HELSINKI: BMW AG, Audi AG and Daimler AG will buy Nokia Oyj’s digital-map unit for 2.8 billion euros ($3.1 billion) to gain technology for connected cars that will eventually be the basis for self-driving vehicles.
The world’s three largest makers of luxury cars will each acquire an equal share of Nokia’s HERE division, and the transaction is expected to be completed in the first quarter of next year, they said Monday. Nokia said its net proceeds on the sale will total slightly more than 2.5 billion euros. While there has previously been limited cooperation on auto parts, a joint acquisition on this scale involving BMW, Volkswagen AG’s Audi division and Mercedes-Benz owner Daimler is unprecedented. The deal underscores the German competitors’ push for self-driving systems independent of technology giants such as Google Inc.
“This purchase shows carmakers are expecting huge new growth in autonomous driving and connectivity,” said Frank Biller, a Stuttgart, Germany-based analyst for LBBW. “They’ve all been cooperating with HERE for maps for a long time, so they know about the quality of the service.” Supplying HERE’s technology to other carmakers would enable the German partners to tap into a market for automotive data and connectivity that consulting company McKinsey & Co. estimates could surge sixfold from current levels to 180 billion euros by 2020.
