Volkswagen is in a negotiation process to buy a stake at GAZ Group

Volkswagen is in a negotiation process to buy a stake at GAZ Group

ReutersVolkswagen is negotiating to acquire shares in the largest LCV manufacturer in Russia: GAZ Group. The relevant statement has been made by six sources from the industry to Reuters, from the financial market and people who witnessed the negotiations, without specifying what kind of stake is involved.

“Negotiations continue. A change in the structure of property of GAZ Group is possible” – said a Russian official on condition of anonymity, without going into details. “So far, it’s just negotiations. ‘Sniffing’ in other words” – said the source from the financial sector. The talks are not necessarily going towards controlled stake, it may be a minority stake, according to sources.

“Deripaska has been on the search for a strategist and VW doesn’t have a Russian partner” – as told by a source from the industry. “It’s unlikely that they will come to an agreement, however, there’s no harm in talking” – the source added. According to the source, neither Oleg Deripaska is willing to lose control over the company, nor VW will go for a minority stake.

The negotiations between VW and GAZ Group do not rule out the possibility of VW becoming the owner of a package in the company. Although the conditions are ripe for such a transaction right now, the negotiations do not have such an aim” – as told by a source close to VW.

VW representative has declined to comment on market speculations. Representatives of Basel and GAZ Group did not comment either.

VW is one of the largest foreign car manufacturers, making local production in Russia. The company has invested a total amount of €1.75 billion in Russian businesses.