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UPDATE 1-Renault-Nissan deal with AvtoVAZ expected next week-sources
December 6, 2012 / 8:31 AM / 5 years ago

UPDATE 1-Renault-Nissan deal with AvtoVAZ expected next week-sources

* Deal agreed in May, to be implemented in 2014

* Deal terms unchanged, sources say (Adds details)

MOSCOW, Dec 6 (Reuters) - Renault and Japanese partner Nissan's $750-million deal to give the French manufacturer effective control of Lada maker OAO AvtoVAZ is expected to be signed next week, two sources close to the Russian company said.

The deal to expand in the growing Russian car market was agreed in May. The companies said at the time that the deal would be finalised later this year and not implemented until 2014.

Under the May agreement Renault-Nissan would buy out investment bank Troika Dialog's stake in AvtoVAZ to hold 67.13 percent of a joint venture with state-owned Russian Technologies which, in turn, controls the automaker through a 74.5 percent stake.

For $300 million, Renault would be swapping its current 25-percent direct stake in AvtoVAZ for an indirect 35-percent holding. Nissan would pay a further $450 million for an effective 15 percent stake. Renault owns 43.4 percent of Nissan, which for its part holds 15 percent of the French carmaker.

Terms of the deal have not changed, the sources said.

International auto makers have been investing in Russia with the expectation of bullish growth as the country's middle class grows.

Germany's Volkswagen expects Russian auto sales to grow by 12 percent to 2.75 million cars in 2012, the CEO of the carmaker's Russian unit, Marcus Osegowitsch, said on Wednesday.

AvtoVAZ and Renault declined comment. (Reporting By Gleb Stolyarov; writing by Megan Davies; Editing by Lidia Kelly)

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