Renault likely to raise stake in AvtoVAZ to 35 percent

Article by Christian A., on June 28, 2011

Renault SA is likely to increase its ownership of AvtoVAZ, the largest vehicle manufacturer in Russia, to 35 percent, while Nissan Motor Co. may obtain 15 percent, Carlos Ghosn, the chief executive officer of the Renault-Nissan alliance, disclosed during a presentation to financial analysts of the six-year business plan of Nissan.

The company did not previously announce to the public the specific breakdown of the shares that the alliance sought in the Russian company.

The alliance has been in talks with the shareholders of AvtoVAZ in order to obtain major ownership of the Russian firm, which manufactures Lada cars. Ghosn has flagged the completion of the deal by the end of 2011.

Currently, Renault owns 25 percent plus one share of AvtoVAZ. The Russian government had already given its nod for the alliance to obtain a controlling stake of AvtoVAZ, which has a 24 percent market share in Russia, making it the largest vehicle manufacturer in the country.

Based on the current market value of AvtoVAZ, the additional 10 percent share of Renault and the 15 percent of Nissan would be worth around $415 million.

Ghosn informed the analysts during his presentation that the alliance would likely end up with around 15 percent shares for Nissan and 35 percent plus for Renault. He further explained that the 15 percent for Nissan will provide the company with some financial advantages.

Topics: renault, avtovaz

If you liked the article, share on:

Comments

Recommended

There is no denying that the new BMW M760Li xDrive really sits at the acme of the German premium carmaker’s 7-Series family. Along with its powerful and confident performance --...
by - March 1, 2017
A nude show can’t get any better than this. As we wait for Koenigsegg to launch the company’s official configurator online, several of its employees have already given us a...
by - March 1, 2017
t seems as if something had flown out of the drawing board. Kind of. Before the Korean carmaker holds its official debut this year, sketches of the updated 2018 Hyundai...
by - February 28, 2017
At the 2017 Mobile World Congress held in Barcelona, SEAT gave the public a taste of what it believes is the future of driving. For the company, this is about...
by - February 28, 2017
It was in April of last year when Honda first revealed plans that it was planning to build a plug-in hybrid version of the Clarity. There will also be an...
by - February 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries