Renault, Nissan to buy majority stake in Russia’s Avtovaz for $750 million

Kyodo

Renault SA said Thursday it and Nissan Motor Co. will jointly invest about $750 million to acquire a majority stake in Russia’s largest carmaker, Avtovaz.

The Renault-Nissan alliance will hold its majority stake in Avtovaz through a joint venture to be formed with Russia’s state company, Russian Technologies. Under their agreement, the joint venture will own 74.5 percent of Avtovaz, Renault said.

The investment by the Renault-Nissan pair, of which Nissan will shoulder $450 million, will give the two companies a 67.13 percent stake in the joint venture in mid-2014, the French automaker said.

Russia Technologies will favorably restructure its loans with Avtovaz as they set up the joint venture, it said.