FAS has given permission to the JV of Rostec and Renault-Nissan for the purchase of more than 75% of AVTOVAZ

FAS has given permission to the JV of Rostec and Renault-Nissan for the purchase of more than 75% of AVTOVAZ

RNS – The Russian Federal Antimonopoly Service (FAS) has approved the application made by Alliance Rostec Auto (joint venture of Rostec and Renault-Nissan Alliance) for the purchase of more than 75% of AVTOVAZ, as announced by the authorities.

“Russian FAS has considered the application made by Alliance Rostec Auto BV for the acquisition of more than 75% of the voting shares of AVTOVAZ, the public joint-stock company registered in Russian Federation, in accordance with Article 33 of the Federal Law No 135-FL on Protection of Competition, dated 26.07.2006, filed on 02.03.2018 in accordance with Article 28 of the Law on Protection of Competition and came to the conclusion that the transaction stated in the application will not lead to restriction of competition” – as stated by the ministry.

FAS has also approved a similar application made by Alliance Rostec Auto for a share increase in AVTOVAZ to over 75% on 13 March. As explained to RNS by Rostec, the current approval is the technical extension of the FAS statement, which was issued last year within the context of the recapitalisation of AVTOVAZ to extend the period of the current closed subscription.”There will be no changes in the recapitalisation programme announced in September 2016” – added the corporation.

Alliance Rostec Auto may acquire almost 99% of AVTOVAZ after the recapitalisation, which will lead to the liquidation of the company within 1-1.5 years and the joint venture will become the sole owner of the company, as told by the head of Rostec: Sergei Chemezov in June last year.

“For now through the joint venture of Alliance Rostec Auto, however, in my opinion a year and a half later we will liquidate the company and it will be a direct possession here in Russia” – Chemezov said.

According to the System of Professional Analysis of Markets of Firms (SPARK) data, 64.6% of AVTOVAZ shares belong to Alliance Rostec Auto and 24.09% to Renaissance Securities (Cyprus) Limited.

Tags: Avtovaz, Lada, Rostec