Renault and Nissan are expected to sign the deal with AvtoVAZ next week.
The $750-million deal according to which Renault will get effective control of Lada maker OAO AvtoVAZ is to be signed next week according to anonymous sources. The deal 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. The agreement stipulates that Renault-Nissan will purchase investment bank Troika Dialog’s stake in AvtoVAZ to hold 67.13% of a JV with Russian Technologies, which controls 74.5% of the automaker.
Renault agreed to swap its current 25% direct stake in AvtoVAZ for a 35% indirect holding for the sum of $300 million and Nissan will pay $450 million more for an effective 15% stake. International automakers have begun to focus on the Russian market as they expect sales to boost as the country’s middle class grows.
The sources said that the terms of the deal have not changed, with payments still to be made in three stages December 2012, July 2013 and June 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.”