Renault to sign deal with Avtovaz on February 29: report

0 Comments | AFP, February, 2008

MOSCOW (AFP) — French carmaker Renault will sign a deal to buy a 25 percent blocking stake in Russian auto giant Avtovaz on Friday, the Kommersant daily reported, citing sources close to the deal.

The deal will be worth between 1.1 billion and 1.2 billion dollars (734 million and 800 million euros) and follows up on a memorandum signed in December, Kommersant said on Wednesday.

Renault and Avtovaz originally planned to sign the agreement on Tuesday but this was delayed as Renault was carrying out due diligence work on Avtovaz, a spokeswoman for the French carmaker told AFP earlier.

Avtovaz CEO Boris Alyoshin meanwhile told the Nezavisimaya Gazeta daily in an interview published on Wednesday that Avtovaz would "significantly" boost production after the deal...