The Belarusian government has valued the assets of the state-run Minsk Automobile Plant (MAZ) at $1.095 billion in a deal to establish a joint venture with Russian truck giant KamAZ, Belta news agency reported on Thursday.
The market valuation of MAZ and KamAZ has been completed, Belarusian First Deputy Prime Minister Vladimir Semashko was quoted by Belta as saying.
Under the deal, KamAZ and MAZ will merge in a holding company by contributing almost half of their shares each to the new firm.
"We have KamAZ valued at $1.68 billion and MAZ valued at $1.095 billion. We are in discussions to establish the holding company named Rosbelavto with its headquarters in Moscow," Semashko said.
Belarus' Minsk Motor Plant, the Borisov Plant of Automotive and Tractor Electrical Equipment (BATE), Belshina tire producer and Russia’s Tutayev Motor Plant will also join the holding company.
Russia and Belarus planned to contribute 49 percent each to the new venture but the final decision is likely to stipulate 54 percent of shares from Russia and 46 percent from Belarus, Semashko added.
"[The deal] will be profitable for MAZ and KamAZ because it is a case when we can unite to resist any imports especially after Russia's accession to the World Trade Organization," Semashko also said.