Renault-Nissan AvtoVAZ Takeover to be Finalized Next Week

The final portions of the deal that would give RenaultRenaultFrance, 1898 > present189 models
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-NissanNissanJapan, 1932 > present159 models
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control of AvtoVAZVAZRussian Federation, 1966 > present8 models
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, maker of Lada cars, is expected to be finalized next week. 

Renault and Nissan will pay $750 million to take 67.13% stock of AvtoVAZ and have 74.5% voting stake. More importantly Renault will gain access to AvtoVAZ's Russian factories. Renault, AvtoVAZ and the Russian government agreed to the deal in May, but it has taken this long to finalize all of the deal's points. Regardless of when the deal is signed, Renault will not begin taking over AvtoVAZ's factories until 2014. 

Earlier plans had indicated that Renault would take over AvtoVAZ's factories to produce its own entry-level vehicles for the Russian market, which is predicted to grow by 12% to 2.75 million annual car sales in 2012. As the Russian middle class grows, its demand for cars is also growing. 

Renault already owned a 25% share in AvtoVAZ.

Source: Automotive News Europe