MOSCOW Dec 11 Renault and Japanese
partner Nissan are set to sign a multi-million deal
expected to give them effective c o ntrol of Lada maker OAO
A press invite sent by Renault said the agreement would be
signed on Wednesday, but the French carmaker declined to give
any further details about the deal or comment on whether its
terms remained the same as when it was first set out.
The companies had reached agreement in May on a deal they
said would be signed off this year and under which
Renault-Nissan will buy out investment bank Troika Dialog's
stake in AvtoVAZ for $750 million.
The two will emerge with 67.13 percent of a joint venture
with state-owned Russian Technologies which, in turn, controls
the automaker through a 74.5 percent stake.
Carlos Ghosn, Renault-Nissan chairman and CEO, and Sergey
Chemezov, general director of Russian Technologies, will sign
the agreement creating the joint venture at a central Moscow
hotel, the French carmaker said.
It will also be signed by AvtoVAZ President Igor Komarov.
The formal signing comes as AvtoVAZ begins production of
Nissan Almera cars at its plant in Togliatti on a jointly funded
The new line, with a capacity for 380,000 cars a year, will
produce five Lada, Nissan and Renault models.
International auto makers have been investing in Russia with
the expectation of strong growth as the country's middle class
The number of cars sold in Russia rose 40 percent last year
to 2.5 million, reversing losses suffered after the credit
crunch, with foreign brands produced in Russia jumping 70
percent to top 1 million.
Growth has slowed this year but remains in double digits and
foreign car makers are looking to further ramp up production.
(Reporting by Reuters trainee Sonia Elks; Editing by David