Renault-Nissan Alliance in Russian JV

The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Alliance an indirect majority stake in Avtovaz, Russia's largest car company and maker of the iconic Lada brand. The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint ven
May 4, 2012 Read time: 2 mins
RSSThe 2453 Renault-838 Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Alliance an indirect majority stake in Avtovaz, Russia's largest car company and maker of the iconic Lada brand.

The Renault-Nissan Alliance, Avtovaz, Russian Technologies and Troika Dialog signed the non-binding agreement yesterday in Paris. According to the memorandum, the Renault-Nissan Alliance and Russian Technologies will contribute their respective stakes in Avtovaz to a joint venture that will control the automaker.

Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13 per cent of the joint venture in mid-2014. The joint venture will then hold 74.5 per cent of Avtovaz.

Renault, which purchased 25 per cent of Avtovaz in 2008 and then helped the company to pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in Avtovaz, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.

Russian Technologies has agreed to restructure its outstanding loans with Avtovaz with approximately US$238 million proceeds from the anticipated sale of Avtovaz’s non-core assets being used to repay part of Russian Technologies' loans. The remainder of circa US$1.56 billion of interest-free debt is being extended well beyond its current maturity date. This gives Avtogaz a strong balance sheet with no liquidity constraints.

For more information on companies in this article

Related Content

  • Encouraging the new generation of ITS entrepreneurs
    September 10, 2014
    A select group of startups will have the chance to rub elbows Wednesday evening with ITS leaders and strategic investment firms at a special reception on the top floor of the Crowne Plaza Detroit Downtown Riverfront Hotel. These entrepreneurs, early-stage startups and mid-stage startups are hoping to secure their next round of investment to help fund development, sales, marketing and general growth.
    Read More
  • Harman to acquire Interchain Solution of Bangalore
    August 8, 2012
    Harman, the global audio and infotainment group has entered into a definitive agreement to acquire Interchain Solution, based in Bangalore, India. The company has an array of cost-effective hardware platforms which are deployed for fleet tracking, connectivity, telematics applications and an Android-based Infotainment solution for automotive OEMs. Some of Interchain’s current customers include TeleAtlas, Aljacs Toyota, MapmyIndia and government institutions such as police and transport departments of variou
    Read More
  • Asecap Days delves beneath the surface of tolling
    August 8, 2017
    Colin Sowman picks his highlights from Asecap’s 45th annual Study and Information Days in Paris. European tolling association Asecap holds annual Study & Information Days, provides delegates with updates on the latest moves and thinking in the tolling sector and is a key meeting place for concessionaires from 22 countries. The importance of road transport to the French economy was highlighted by the country’s director general of transport infrastructures, François Poupard, in the opening session. He told th
    Read More
  • RFQ for Knik Arm Crossing toll bridge in Alaska
    April 19, 2012
    The Knik Arm Bridge and Toll Authority (KABATA) has issued a Request for Qualifications (RFQ) for concessionaires to design, construct, finance, operate and maintain the Knik Arm Crossing under an availability payment public-private partnership. Statements of Qualifications (SOQ) are due 15 September, 2011 at 4:00PM Alaska Daylight Saving Time. The RFQ can be downloaded at http://notes4.state.ak.us/pn/pubnotic.nsf or interested parties can receive the RFQ by contacting Michele Casey at michele.casey@alaska
    Read More

Highlighted Content