The Renault-Nissan Alliance and Russian Technologies State Corporation (RTSC) have created a joint venture (JV) that 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.
As part of the deal, Renault-Nissan will invest RUB23bn (£460m). The investment will give Renault-Nissan 67.13 per cent of the joint venture by mid-2014. The joint venture will then hold 74.5 per cent of AVTOVAZ.
Renault, which purchased 25 per cent of AVTOVAZ in 2008, will invest about RUB11.3bn in the joint venture and plans to own 50.1 per cent in the joint venture by June 2014. Nissan, which did not previously own a stake in AVTOVAZ, will invest RUB11.7bn and plans to own 17.03 per cent in the joint venture by the same period.
Over the same period, RTSC will hold 32.87 per cent of the joint venture.