Renault-Nissan to gain controlling share of Russian AvtoVAZ automaker
The Renault-Nissan Alliance is looking to gain a controlling share in Russia's largest automaker, OAO AvtoVAZ. Rachel Konrad, spokesperson for the Renault-Nissan Alliance, said CEO Carlos Ghosn is interested in increasing Renault's interest in the company to 35 percent from the 25 percent it has now, as well as giving Nissan a new 15 percent stake.
AvtoVAZ has the largest chunk of Russia's automotive market share with its Lada brand at 24 percent. The Renault-Nissan Alliance estimates it can grab up to 40 percent with the three brands cooperating with each other. Further details are not available, however, as "the alliance is still negotiating behind closed doors with AvtoVAZ and is not disclosing details of the negotiation," according to Konrad.
Renault-Nissan's new share in AvtoVAZ would be worth about $415 million, based on AvtoVAZ's current value. The shares would be sold to Renault-Nissan by Russian Technologies Corp. and Troika Dialog, a Russian investment firm. The deal is rumored to be finalized by the end of 2011.
Source: Automotive News