Renault May Hand Over Lada Maker to Russian State for a Ruble
(Bloomberg) -- Renault may transfer its majority stake in Russian carmaker AvtoVaz to a state-run automobile research institute in what is essentially a nationalization of the unit by government.
NAMI, which reports to Russia’s industry ministry, would buy the stake for a ruble ($0.01) but would give Renault a five or six-year option to buy it back, the industry ministry said in an email, confirming a report by Interfax.
In addition, Renault is expected to transfer its shares in its Avtoframos car plant in Moscow to the city government, the ministry said.
A spokesman for Renault declined to comment in the report.
The French carmaker is the most exposed company among vehicle manufacturers to Russia through its 68% stake in Lada-maker AvtoVaz, the country’s biggest automaker. Renault valued its operations in Russia -- its second biggest market -- at 2.2 billion euros ($2.4 billion), including goodwill, at the end of last year.
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