The European Union on Wednesday approved Renault’s $1 billion buy of a 25 percent share into OAO Avtovaz, the producer of Lada cars in Russia. Renault, which owns 44.4 percent of Nissan , placed the winning bid, beating out General Motors and Fiat in the process, back in December. With yesterday’s European Commission ruling deciding the agreement will not threaten open competition in the European car market, the deal can be finalized.
Renault will now get a 25 percent stake in Avtovaz, along with 3 of 12 seats on the company’s board. The two brands will also share engines and technologies as the French company develops a new generation of Ladas, according to The Toronto Star.
Russia is one of the world’s fastest growing auto markets, and with Renault, Nissan and Lada, the three combined would hold a 40 percent market share.
