Renault and Nissan to close a deal to acquire majority stake in Russia’s AvtoVAZ shortly — report

Nissan sports car

Automotive groups Renault (EPA:RNO) and Nissan (TYO:7201) are expected to ink the agreement next week for its planned USD750m (EUR574.5m) purchase of a majority stake in Russian carmaker AvtoVAZ (MCX:AVAZ), according to informed sources cited by Reuters today.

The French-Japanese group signed in May a memorandum of understanding to set up a joint venture with Russian Technologies which will give Renault-Nissan an indirect majority stake in AvtoVAZ, allowing it to expand in the growing Russian car market.

Under that deal, Renault-Nissan would get a 67.13% stake in the JV, which will hold 74.5% in AvtoVAZ at completion of the transaction in 2014.

Back in May, the parties said the deal would be concluded in 2012 and implemented only in 2014.

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