Renault to sign deal with Avtovaz on February 29: statement

0 Comments | AFP, February, 2008

MOSCOW (AFP) — French carmaker Renault will sign a deal to buy a stake in Russia's biggest auto producer Avtovaz on Friday, state industrial giant Rosoboronexport said in a statement.

The two carmakers were also to sign an agreement on "strategic partnership."

The deal calls for Renault to buy a 25 percent plus-one-share blocking stake for between 1.1 billion and 1.2 billion dollars (734 million and 800 million euros), the Kommersant daily said on Wednesday.

The two sides signed a memorandum of understanding in December. Rosoboronexport owns a majority stake in Avtovaz.

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...