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By NICHOLAS WATTEMANERReutersCATECHEMICAL SUPPLIER/DERMOT-TRUCKERCATECATECH, Ohio(Reuters) – BMW AG will sell its automotive unit to Chinese firm Daimler AG, the company said on Thursday, setting up a potential merger that could put BMW’s U.S. operations on the verge of becoming China’s biggest automaker.

Daimler would be the largest buyer of BMW in the United States, after Toyota Motor Corp, with the largest share of its U.