Renault-Nissan's $750 million controlling investment in Russia's OAO AutoVAZ¬†is set to wrap up next week, Russian sources have revealed.
The deal, which will see Renault-Nissan take a 67 percent share in AutoVAZ, was announced earlier this year but won't actually go into effect for about 14 months from now.
Renault-Nissan will boost its current 26 percent share to 67 percent by buying out Russian investment bank Troika Dialog's stake. Renault-Nissan ally Russian Technologies, a state-owned firm, controls a further 7 percent of AutoVAZ, which effectively gives the French-Japanese alliance a controlling stake.
The expansion of Renault-Nissan's reach isn't likely to change its product portfolio globally, but it gives the automakers a big leg up in the fast-growing Russian market, which is set to expand by about 12 percent to roughly 2.75 million vehicles this year.¬†
AutoVAZ, the country's largest domestic automaker, dates back to communist Russia, when it was formed as a producer of "people's cars" for its highly regemented home market, although its products have long been sold in Western Europe. For a brief period, the company's Lada¬†Niva¬†compact off roader (pictured) was sold in Canada.¬†