Renault-Nissan Buys Majority of AutoVAZ via Joint Venture

We wrote a few weeks ago about AvtoVAZVAZRussian Federation, 1966 > present8 models
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, builder of Ladas, ending production of the Lada 2107. Now NissanNissanJapan, 1932 > present159 models
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-RenaultRenaultFrance, 1898 > present189 models
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has created a joint venture with Russian Technologies to take a majority stake in AvtoVAZ. Nissan-Renault will pay US$750 million to take majority stake in AvtoVAZ, and Russian Technologies will restructure the company's debt. The deal will not be completed until 2014. 

Renault-Nissan Alliance, AvtoVAZ, Russian Technologies and Troika Dialog signed a non-binding agreement in Paris on May 3 creating the new joint venture. The venture will control 74.5% of AvtoVAZ, and Renault-Nissan will control 67.13% of the joint venture. 

Renault first bought 25% of AvtoVAZ in 2008. It took over 50% of the company in January, 2012. Currently, Nissan has not had any ownership in AvtoVAZ, but it is paying $450 million into the new company to hold a share. Renault is paying $300 million into the new joint venture. 

Russian Technologies is restructuring its debt with AvtoVAZ. It will be paid $238 million for the sale of some of the company's assets. It is also extending the payback deadline of a $1.56 billion loan that it had to AvtoVAZ. 

To create the joint venture, the two parties are buying Troika Dialog's share in AvtoVAZ. 

AvtoVAZ sold 578,387 cars last year and hold 33% of the Russian Market. 

Renault-Nissan says that Russia is its third's largest market after the United States and China

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