Russia’s AvtoVAZ, the parent company of the well-known Lada brand, has come under the control of majority shareholder Renault-Nissan, as the deal was completed mid-June.
The planning of the takeover – which was first agreed back in 2012, called for the French-Japanese Renault-Nissan alliance to be completed sometime this month, with a Renault spokesman confirming it was done on June 18.
The situation is actually a little more complicated: the alliance has a controlling 67.1 % stake in the holding company that in turn controls 74.5 % of AvtoVAZ. The rest of the stake in the controlling holding is owned by Russian state technology conglomerate Rostec.
Renault, which itself in turn owns 43.4% of its Japanese partner Nissan, has initially paid no less than $1 billion for just 25% of the AvtoVaz stake back in 2008. The French have declared themselves confident in the company’s prospects on the Russian market, even as new car sales were hit by a decline since last year, triggered by the general slowdown in Russian economy, while the situation took another turn for the worse because of political tensions with Ukraine.
Last year, Lada, AvtoVAZ’s main brand, reported losing money as its deliveries slowed by 15% to 456,309 units. On the other hand, Renault, the second best selling brand in Russia, managed to increase sales in 2013 by 11% to 210,099 cars.
Via Automotive News Europe