The Renault-Nissan alliance has agreed to raise its stake in Russian automaker Avtovaz to take majority control of Russia’s largest carmaker.
“Renault-Nissan plans to invest about $750 million [in the project] and that will give [the alliance] a 67.13 percent stake in the joint venture by mid-2014.
The joint venture will hold 74.5 percent of AvtoVAZ. The deal is scheduled to be closed in 2014,” Renault Russia said in a statement.
According to the memorandum between Renault-Nissan Alliance and AVTOVAZ the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in AVTOVAZ to a joint venture that will control AVTOVAZ, Russia’s largest car company and maker of the iconic Lada brand.
Russian Technologies will restructure the outstanding loans of Avtovaz using approximately $238 million of the proceeds from the sale of Avtovaz’s non-core assets, said Renault-Nissan, adding that the remainder of around $1.56 billion of interest-free debt is being extended well beyond its current maturity date.
Renault bought a 25 percent plus one share in AvtoVAZ in 2008.
Renault, Nissan and Lada are launching a product offensive that will update all core Lada models and launch new cars across the three brands.