The Renault-Nissan alliance and Russian Technologies state corporation will set up a joint venture company which will have a 74.5 percent stake in Russia's largest car maker AvtoVAZ, Renault Russia said on Thursday.
Renault bought a 25 percent plus one share in AvtoVAZ in 2008. The French car maker and Japan's Nissan will increase their share in AvtoVAZ to a controlling stake under the deal.
"Renault-Nissan plans to invest about $750 million [in the project] and that will give [the alliance] a 67.13 percent stake in the joint venture by mid-2014. The joint venture will hold 74.5 percent of AvtoVAZ. The deal is scheduled to be closed in 2014," Renault Russia said in a statement.
The companies plan to become full owners of AvtoVAZ by acquiring Troika Dialog investment firm's stake for the joint venture by 2014.
Under the other terms of the deal, Russian Technologies will re-structure AvtoVAZ's debt of $1.56 billion and repay $238 million of it soon.
AvtoVAZ's ordinary share price rose over three percent at the MICEX-RTS stock exchange by mid-Thursday to 23 rubles ($0.783) per stock on news of the deal.