Renault-Nissan agree to buy Russian car maker

entropy13 · 05-03-2012, 03:55 PM

MOSCOW (AP) — Car makers Renault and Nissan on Thursday signed a nonbinding agreement to buy a controlling stake in Russian car producer AvtoVAZ. But the deal will be complete only in 2014, later than some had expected, causing shares in the Russian company to slide.

Renault and Nissan, who operate as an alliance, said in a joint statement that they will invest $750 million to take a 67 percent share in a joint venture with state-owned corporation Russian Technologies. The venture will hold 74 percent in AvtoVAZ. Renault will pay $300 million and Nissan $450 million.

AvtoVAZ shares dropped 7 percent, however, on news that payments on the takeover will be completed by 2014, not as quickly as some industry analysts had predicted.

Ghosn on Thursday called the deal "the latest step in an expanding collaboration that helps modernize the leader of the Russian auto industry."

AvtoVAZ's iconic Lada brand has dominated car sales in Russia for decades. But its market share has been shrinking in recent years as rising incomes have allowed Russians to choose slightly more expensive but more reliable foreign brands. Lada cars are increasingly seen as the cheapest option for those who cannot afford even the cheapest foreign vehicle.

Renault purchased 25 percent of AvtoVAZ in 2008 and has since been helping the struggling car maker with technology and cash. The 2008 economic downturn hurt AvtoVAZ sales, forcing the government to bail it out as a major employer in the Volga river town of Togliatti.

Renault-Nissan will raise its shareholding by acquiring a 25 percent from Moscow-based investment bank Troika Dialog. The French-Japanese group said that over the coming months it will perform financial, legal and environmental due diligence at the plant in Togliatti.

Full article here.

yogurt_21 · 05-03-2012, 04:05 PM

so a japanese man, a russian, and a french man walk into a bar...

twilyth · 05-03-2012, 04:56 PM

Quote:

Originally Posted by yogurt_21

so a japanese man, a russian, and a french man walk into a bar...

The russian sells the other 2 into the white slave trade.

05-03-2012, 03:55 PM	#1
entropy13 Senior Member Join Date: May 2009 Location: Philippines Posts: 4,464 Thanks: 79 Thanked 4,470 Times in 1,499 Posts Dislikes: 21 Disliked 172 Times in 145 Posts	Renault-Nissan agree to buy Russian car maker MOSCOW (AP) — Car makers Renault and Nissan on Thursday signed a nonbinding agreement to buy a controlling stake in Russian car producer AvtoVAZ. But the deal will be complete only in 2014, later than some had expected, causing shares in the Russian company to slide. Renault and Nissan, who operate as an alliance, said in a joint statement that they will invest $750 million to take a 67 percent share in a joint venture with state-owned corporation Russian Technologies. The venture will hold 74 percent in AvtoVAZ. Renault will pay $300 million and Nissan $450 million. AvtoVAZ shares dropped 7 percent, however, on news that payments on the takeover will be completed by 2014, not as quickly as some industry analysts had predicted. Ghosn on Thursday called the deal "the latest step in an expanding collaboration that helps modernize the leader of the Russian auto industry." AvtoVAZ's iconic Lada brand has dominated car sales in Russia for decades. But its market share has been shrinking in recent years as rising incomes have allowed Russians to choose slightly more expensive but more reliable foreign brands. Lada cars are increasingly seen as the cheapest option for those who cannot afford even the cheapest foreign vehicle. Renault purchased 25 percent of AvtoVAZ in 2008 and has since been helping the struggling car maker with technology and cash. The 2008 economic downturn hurt AvtoVAZ sales, forcing the government to bail it out as a major employer in the Volga river town of Togliatti. Renault-Nissan will raise its shareholding by acquiring a 25 percent from Moscow-based investment bank Troika Dialog. The French-Japanese group said that over the coming months it will perform financial, legal and environmental due diligence at the plant in Togliatti. Full article here. __________________ "Sir, we're surrounded!" "Good! We can attack in any direction!" ------- "Io credo ch'ei credette ch'io credesse." - "I think perhaps he thought that I was thinking." ------- "I used to be indecisive, but now I'm not sure."

05-03-2012, 04:05 PM	#2
yogurt_21 Senior Member Join Date: May 2009 Location: Arizona, USA Posts: 3,464 Thanks: 7,357 Thanked 1,672 Times in 993 Posts Dislikes: 69 Disliked 20 Times in 17 Posts	so a japanese man, a russian, and a french man walk into a bar... __________________ 1 WITCH. Thrice the brinded cat hath mew'd. 2 WITCH. Thrice and once, the hedge-pig whin'd. 3 WITCH. Harpier cries:—'tis time! 'tis time! 1 WITCH. Round about the caldron go; In the poison'd entrails throw.— Toad, that under cold stone, Days and nights has thirty-one; Swelter'd venom sleeping got, Boil thou first i' the charmed pot! ALL. Double, double toil and trouble; Fire burn, and caldron bubble.

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