June 27, 2014 / 9:30 AM / 5 years ago

Renault-Nissan completes deal to take control of AvtoVAZ

Carlos Ghosn, chairman and CEO of the Renault-Nissan Alliance, gestures as he speaks at a news conference in the southern Indian city of Chennai July 16, 2013. REUTERS/Babu

MOSCOW (Reuters) - French-Japanese carmaking alliance Renault-Nissan has completed a deal to take control of Russia’s largest automaker AvtoVAZ, Renault said on Friday.

A Renault spokesman said the deal, which was agreed in 2012 and expected to be sealed this month, was completed on June 18.

Renault-Nissan now has a 67.1 percent stake in the holding company that controls AvtoVAZ. The holding, in which Russian state technology conglomerate Rostec owns the remaining shares, in turn controls 74.5 percent of AvtoVAZ.

AvtoVAZ reported a loss last year as slowing economic growth depressed Russian car sales. Its shares were up 1.4 percent in early afternoon trading, outperforming the wider market.

Renault has said it is confident of its long-term prospects in Russia, despite Western sanctions over the Ukraine crisis and declining sales.

Renault, which owns 43.4 percent of Nissan, paid $1 billion for an initial 25 percent AvtoVAZ stake in 2008.

Reporting by Gleb Stolyarov; Writing by Alexander Winning; editing by Jason Neely

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