Renault-Nissan Alliance and state corporation "Russian Technologies" signed an agreement to establish a joint venture Alliance Rostec Auto BV. As a result, Renault-Nissan will get control of the Russian car giant, and the "Russian Technologies" will hold a blocking stake.
In May, Renault-Nissan and the "Russian Technologies" intended to sign a final agreement and close the deal on a joint venture by the end of the year. However, when the parties signed an agreement that has no legal power.
Now the company will sign an agreement and will transfer their stakes "AvtoVAZ" as a contribution to capital in the joint venture, which will control the plant.
Renault-Nissan, investing $ 750 million, by 2014, the joint venture will receive 67.13%. Thus, the joint venture will own 74.5% of shares of "AvtoVAZ". In exchange for the investment Renault-Nissan "Russian Technologies" will hold a debt restructuring "AvtoVAZ".
The Board of Directors of "AvtoVAZ" has already approved the agreement on a joint venture.
"Today’s historic agreement — a unique deal that is beneficial for all three brands, Renault, Nissan and LADA, and mark a new stage of successful cooperation. Joint venture will accelerate our development in Russia and contribute to the competitiveness of" AvtoVAZ ", leader of the Russian automotive industry" — commented on the signing of the agreement, President Renault-Nissan alliance KarlosGon.
Now, "Russian Technologies" owns 28.89% of the company, Renault owns 25% of shares, which were acquired in 2008, Troika Dialog Investments Limited owns 20.14%. As a result, the share of the joint venture to achieve a 74.5% expected for 2014, and the "Russian Technologies" will sell 4.89% of "AvtoVAZ".
Earlier, the "AvtoVAZ" published the program of 2020, the company plans to take market share of 23%. Now the market share of "AvtoVAZ" is 18%. It is assumed that the company will become the leader in the segment of low cost.
Investments in eight years will be about 180 billion rubles. Of this amount, 12% will be spent on upgrading facilities, and the bulk of investment will focus on the model of "AvtoVAZ".