Today, December 12th, the Renault-Nissan partnership finalized the Russian auto deal.
The two automakers will invest $742 million in the joint venture with Moscow state entity Russian Technologies, which will control Lada-maker AvtoVAZ. After signing the deal in Mosco, Renault-Nissan’s CEO Carlos Ghosn said this agreement will accelerate the company’s “Russian market offensive”.
The $750-million deal according to which Renault will get effective control of Lada maker OAO AvtoVAZ was agreed in May but the two companies said that it will be finalized by the end of 2012 and implemented no sooner than 2014.
Ghosn said “Renault and Nissan are going to pursue transfers of technology towards Russian factories, while our Russian colleagues will be increasingly present in the multi-cultural management of the alliance.”
The agreement stipulates that Renault-Nissan will purchase investment bank Troika Dialog’s stake in AvtoVAZ to hold 67.13% of the JV and the rest of 32.87% will be owned by Russian Technologies. The JV will then own 74.5 percent of AvtoVAZ. The investment comes at the right time for Russia, which has seen a slowdown in auto sales recently as the country put off spending due to a slowdown in the economy. November was the first month with flat auto sales in more than two years.