Renault-Nissan to buy Russian firm in stages

Bloomberg

Renault SA and affiliate Nissan Motor Co. may pay for their planned 50 percent stake in OAO AvtoVAZ over two years as goals are met, according to an executive at the Russian carmaker’s second-biggest local owner.

A memorandum of understanding may be signed as soon as the end of February or at the Geneva auto show starting March 8, with the transaction completed three months later, Sergey Skvortsov, deputy chairman of Troika Dialog, said in Moscow.

“The sum of the deal is significant for the alliance, and it is important for them to pay by installments, linked to the stages of the plan’s development,” Skvortsov said. “Most likely it may take about two years.”

Renault, France’s second-largest carmaker, already owns 25 percent of Togliatti-based AvtoVAZ, Russia’s largest. It paid $1 billion for the holding in 2008. Talks on an expanded stake have included Renault alliance partner Nissan since late 2010. Troika wants to sell its entire 21 percent holding in AvtoVAZ, while state-owned Russian Technologies Corp., currently the biggest investor, would dispose of 4 percent, Skvortsov said.

Any deal would be of “comparable value” to what Renault paid for its stake while taking account of the French manufacturer’s investments since then, Skvortsov said.