Renault could agree to increase its holding in Russian carmaker AvtoVAZ, in return for Moscow taking a stake in the French company according to a report in the Kommersant business daily today (27 November).
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This is expected to be part of a rescue plan being put together by AvtoVAZ shareholders, Russia’s state-controlled investment group Russian Technologies, Moscow bank Troika Dialog and 25% stakeholder Renault.
The Russian carmaker featured in talks on Wednesday between the country’s prime minister Vladimir Putin and French President Nicolas Sarkozy, to discuss the main trade and economic themes.
Kommersant quoted an unnamed source close to the talks as saying the deal could include Renault increasing its stake in AvtoVAZ to a controlling one, while Russia gets a share in the French company. A government source said that Renault’s stake will likely be increased, but possible not to a controlling one.
Russia hopes that mass lay-offs at AvtoVAZ can be avoided through the deal with Renault. The French car maker has said in recent months that it would be willing to help save AvtoVAZ by contributing technology, know-how, and equipment, but ruled out funnelling cash to the struggling business.
French newspaper Les Echos earlier reported that the deal could include a non-cash aid package worth EUR240m (USD362.3m).
Subsequent plan announcement here
