The Renault-Nissan Alliance has formed a joint venture (JV) with state corporation Russian Technologies to own a 74.5% stake in Russian car maker AVTOVAZ.
The move follows unveiling of AVTOVAZ's $525m assembly line at the Togliatti factory, which is expected to increase its capacity to about 1 million cars per year.
As per the deal, the alliance will invest about $750m, which will give them 67.13% of the JV in 2014, facilitating them to further hold 74.5% of AVTOVAZ.
Of the total investment, Renault will invest about $300m and Nissan will invest about $450m, while Russian Technologies will restructure its RUB7bn ($238m) outstanding loans to AVTOVAZ with the proceeds of an expected sale of the Russian carmaker's non-core assets.
The transaction is expected to be completed in 2014.
Renault-Nissan Alliance has sold 878,990 cars in Russia in 2011 and maintains a market share of about 33%.
