Bloomberg News

Renault-Nissan Said to Target AvtoVAZ Stake-Buy Deal in July

June 29, 2011

June 29 (Bloomberg) -- Renault SA and its alliance partner Nissan Motor Co. aim to reach an agreement next month to assume control of OAO AvtoVAZ, Russia’s biggest carmaker, two people familiar with the matter said.

Renault, which currently owns 25 percent of AvtoVAZ, and Nissan are in discussions on how to split an additional 25 percent stake, the people said, declining to be named because the negotiations are private. The parties have previously said they aimed to wrap up talks by the end of 2011.

Renault and Nissan are in talks to buy shares in AvtoVAZ held by Russian Technologies Corp. and Troika Dialog, which each of which holds 25 percent. The Togliatti-based manufacturer dominates the Russian car market with its Lada brand. By partnering with AvtoVAZ, the Renault-Nissan alliance aims to increase the three brands’ combined share to 40 percent.

“The alliance is still negotiating behind closed doors with AvtoVAZ and is not disclosing details of the negotiation,” Rachel Konrad, a Paris-based spokeswoman for Renault-Nissan, said today via e-mail.

Valery Kartavtsev, a spokesman for Russian Technologies, declined to comment, as did a spokeswoman for Troika Dialog.

Renault currently holds 25 percent of AvtoVAZ, while its Japanese partner doesn’t have a direct stake. The French carmaker, based in Boulogne-Billancourt, may seek to raise its stake to 35 percent, under “one hypothesis” in the talks, Konrad said today, giving Nissan 15 percent.

Konrad was confirming comments that Carlos Ghosn, chief executive officer of both Renault and Nissan, made to analysts this week. She reiterated that Renault will be the “dominant partner” in AvtoVAZ partnership.

--Editors: Chris Reiter, Christopher Jasper

To contact the reporters on this story: Yuliya Fedorinova in Moscow at yfedorinova@bloomberg.net; Laurence Frost in Paris at lfrost4@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus