Renault-Nissan will take a controlling stake in AvtoVAZ

Federal Antimonopoly Service (FAS) granted the application of the alliance Renault-Nissan filed on August 2, 2012 for the purchase of a controlling stake in the automobile giant.

As a result, the total share of the conglomerate (AvtoVAZ, RENO and Nissan) in the Russian automobile market will exceed 35%. Currently Renault (25%), Russian Technologies (28,89%) and Troika Dialog (20,14%) own shares in AvtoVAZ. The French-Japanese alliance is planning to establish a joint venture with the state company Rostekhnologii and to consolidate 74.5% shares of Volga automobile plant within two years. In this case Rostechnologii company will get rid of a small part of shares up to the level of blocking stake. It was previously reported in the press that the Renault-Nissan Alliance will own 67% shares in the created JV in case it invests $750 million by 2014. Control over the capital of the joint venture in the form of contributions will be carried out by Avtovaz. Renault-Nissan investments will be used to restructure the automaker's debts.

Avtovaz is currently undergoing an environmental impact assessment, in order to analyze the condition of the enterprises.

The parties will sign the final contract in December of this year.