Russian Antitrust Agency has approved the control of Renault at Avtovaz

Russian Antitrust Agency has approved the control of  Renault at Avtovaz

Business-gazeta – The Russian Antitrust Agency – FAS has approved the agreement between Renault-Nissan and Rostec, concerning the transfer of the control shares of Avtovaz.

Accordingly, Renault-Nissan will be liable to account for any increase above 15% in automobile prices, in comparison with the previous year’s average. Otherwise, FAS will have the right to impose fines and invalidate the agreement.

In accordance with the aforementioned agreement, Renault-Nissan and Rostec will transfer the shares they hold into the organisation which will take over the control of Avtovaz, in the form of capital investment.

67.3% share of the partnership, which will hold 74.5% of Avtovaz shares, will belong to Renault-Nissan. Renault-Nissan will make a total investment of $750 million in Avtovaz, due to this reason. The current distribution of Avtovaz shares is as follows: 28.89% – Rostec, 25% – Renault and 20.14% – Troika Dialog.