RUSSIA: AvtoVAZ agrees terms on IzhAvto buy
AvtoVAZ has agreed with SOK Group on all key terms relating to the purchase of struggling carmaker IzhAvto, according to Russian media reports.
The business daily Kommersant reported that AvtoVAZ agreed to swap a 75% stake in the Lada Servis dealership for SOK Group's 98% stake in IzhAvto. AvtoVAZ will keep a 25% stake in Lada Servis.
Russia's largest carmaker will have to assume IzhAvto's debts if it closes the deal to buy the struggling company.
AvtoVAZ is expected to start production of Renault-Nissan cars at IzhAvto, according to earlier media reports.