RUSSIA: AvtoVAZ suspends talks to buy IzhAvto
AvtoVAZ has reportedly suspended its talks to buy carmaker IzhAvto from SOK Group.
Business daily Kommersant reported Friday that AvtoVAZ has asked SOK Group to suspend the talks for at least several months, as it need to re-evaluate its strategic plans for expanding amid the slowdown in the Russian economy and autos market.
AvtoVAZ planned to swap a 75% in his car dealership Lada-Service for SOK Group's 98% stake in IzhAvto, the sources close to AvtoVAZ and SOK Group told Kommersant earlier.
The board of directors of AvtoVAZ has approved selling a 75% stake in Lada-Servis, AvtoVAZ said in early February.
AvtoVAZ has been hard hit by the slump in Russia's market and is experiencing parts supply shortages and liquidity difficulties.