RUSSIA: Renault-Nissan to take control of AvtoVAZ
The alliance, AvtoVAZ, Russian Technologies and Troika Dialog have signed a non-binding agreement, ending many months of speculation over the future of the Lada car maker. According to this memorandum, the alliance and Russian Technologies will contribute their respective stakes in AvtoVAZ to a joint venture with this new JV in turn controlling AvtoVAZ.
Renault-Nissan is due to own 67.13% of the new JV in mid 2014, following an investment of US$750m. This JV will then hold 74.5% of AvtoVAZ. The transaction is expected to be complete by 2014.
Renault purchased 25% of AvtoVAZ in 2008, these funds being used to restructure the company. Its new investment will be close to $300m, with Nissan contributing an additional $450m. Renault and Nissan say they will make ongoing, periodic payments until 2014 while the joint venture will acquire Russian investment company Troika Dialog's entire stake in AvtoVAZ by 2014.
As part of the May 2012 announcement, Russian Technologies, the state-controlled weapons manufacturer which is also the largest shareholder in AvtoVAZ, agreed to restructure its outstanding loans with the carmaker. Approximately RUB7bn ($238m) proceeds from the anticipated sale of AvtoVAZ's non-core assets will be used to repay part of Russian Technologies' loans.
The alliance further stated it would perform financial, legal and environmental due diligence over the coming months. The parties expect to sign definitive agreements and close the transaction by the end of 2012, subject to customary regulatory approvals.
A final update of just-auto's list of concepts and production models which made their debuts at the Los Angeles auto show's 28 & 29 November press days....
Ford and Toyota will lead the US PEV market from 2012 to 2020, a local study found....
Superstorm Sandy and its aftermath is not expected to affect October US new light vehicle sales to any great extent and may, in fact, give November a boost, a west coast-based analyst told just-auto....
Renault insists the fact it has called all its major unions to a meeting in Paris next week is not a precursor of factory closure announcements....
The Istanbul motor show's media preview day has taken place. Renault revealed two production model world premieres....
Rival US car buyers guides Edmunds.com and TrueCar.com are barely 5,000 units apart in their forecasts for October 2012 new car sales - Edmunds' crystal ball said 1,132,878 new cars would be sold for ...
- Audi TDI tech is 25 years of age
- Swallowing Fiat-Chrysler 'would be bad for VW'
- VEHICLE ANALYSIS: BMW X4
- VEHICLE ANALYSIS: Driving the Swedish nanny state
- THE WEEK THAT WAS: Roasting in Kia's Mojave oven
- Sir Nick Scheele dies
- Volvo claims two safety firsts for XC90
- Rule change hits 'free charger' offers for EVs
- Nissan learns from India mistakes
- Opel Group formed within Adam Opel
- Tesla: The Californian start-up that made head way on the automotive giants
- Global light vehicle engine technologies market- forecasts to 2029
- New Cars: Top 5 Emerging Markets Industry Guide
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- Global electrified light vehicles market- forecasts to 2018