Renault-Nissan moves to take control of Russia's largest automaker

Renault-Nissan aims to increase its stake in Avtovaz, giving the alliance majority control over Russia's largest automaker. The deal will likely see Renault and Nissan vehicles manufactured beside Lada models in the near future. Avtovaz recently finished a new production facility in Togliatti where the three brands plan to produce up to 1.6 million units per year. That move would make the Togliatti plant one of the largest automotive manufacturing facilities in the world. The companies expect the agreement to become final by 2014.

Technically, the deal is structured under a joint venture between Renault-Nissan and Russian Technologies, a state-owned corporation. Under a recently-signed memorandum of understanding, Renault-Nissan will own 67.13 percent of the venture, which will own 74.5 percent of Avtovaz. The alliance already holds a 25 percent stake in Avtovaz.

Under the MOU, Renault will invest around $300 million in the joint venture, while Nissan will put in $450 million.