MOSCOW: Nissan motor and French automaker Renault have signed a deal with the Russian technologies corporation to officially get a major stake in Russia's largest automaker, Avtovaz by 2014.
Under the terms of the deal Renault and Nissan will create a joint venture, named Alliance Rostec Auto BV. where they will invest $742 million to take control of Avtovaz through a 67.13% stake in the joint venture by mid year 2014, Russia Today reported.
Russian Technologies will hold a 32.87% stake in the joint venture.
Nissan Motor President Carlos Ghosn told Japanese Radio NHK, that Russia is poised to become the largest auto market in Europe by 2015.
He said he wants the Nissan-Renault alliance to be able to compete against Russia's automakers production and sales.
Avtovaz has already started production of Nissan Almera models, but the newly created alliance also plans to strengthen Russia's Lada cars. (QNA)
