Renault-Nissan and Russian Technologies create joint venture to
accelerate product launches and technology transfer to AVTOVAZ,
Russia's largest carmaker.
Renault-Nissan will get a majority stake in the joint venture, called
Alliance Rostec Auto BV, which will control AVTOVAZ, leader of the
Russian auto market.
This deal promotes Renault, Nissan and LADA's improved synergy and
product development in the fast-growing Russian market.
MOSCOW, Dec. 12, 2012 /CNW/ - The Renault-Nissan Alliance and Russian
Technologies State Corporation have created a joint venture which will
hold their entire equity interests in AVTOVAZ and serve as a stable,
long-term controlling shareholder for Russia's largest car company and
the owner of the LADA brand.
Renault-Nissan Chairman and CEO Carlos Ghosn announced the creation of
Alliance Rostec Auto BV today at a ceremony in Moscow with Sergey
Chemezov, General Director of Russian Technologies and Chairman of the
Board of AVTOVAZ, and Igor Komarov, President of AVTOVAZ.
"Today's historic agreement is a win-win-win for all companies: Renault,
Nissan and AVTOVAZ. It is a significant new chapter in an already solid
partnership," Ghosn said. "The joint venture will help accelerate our
Russian market offensive. It will support the competitiveness of
AVTOVAZ, Russia's auto industry leader."
According to the terms of the deal, Renault-Nissan will invest RUB23
billion (US$ 742 million). The investment will give Renault-Nissan
67.13% of the joint venture by mid-2014. The joint venture will then
hold 74.5% of AVTOVAZ.
Renault, which purchased 25% of AVTOVAZ in 2008 and then helped AVTOVAZ
in its successful turnaround, will invest about RUB11.3 billion (US$366
million) in the joint venture and plans to own 50.1% in the joint
venture by June 2014. Nissan which did not previously own a stake in
AVTOVAZ, will invest RUB11.7 billion (US$376 million) and plans to own
17.03% in the joint venture by the same period.
Over the same period, Russian Technologies will hold 32.87% of the joint
As part of the deal, Russian Technologies is restructuring its
outstanding loans with AVTOVAZ with RUB8 billion (US$258 million)
proceeds from the anticipated sale of AVTOVAZ's non-core assets being
used to repay part of Russian Technologies loans.
For the full release, go to: http://www.media.blog.alliance-renault-nissan.com/news/3566
Video news release and b-roll also available on the site.
SOURCE: Renault-Nissan Alliance
For further information:
Media contact: Mia Nielsen, Renault-Nissan Alliance, +33-(0)176-87-12-33, firstname.lastname@example.org